B&L; Landscapes, Inc. Mini Practice Part 5 Bill Graham and Lorry Miller incorpor

Question

B&L; Landscapes, Inc. Mini Practice Part 5 Bill Graham and Lorry Miller incorporoted B&1 Landscapes, Inc, on July 1,2016. The business consists of lawn care and sprinikder system instalations. in addifion they also sell two types o fertilizer During 2017.8&1 Landscapes Inc.acquired a 30% interest in Crestline Pipe. The president of Crestine wants to develop a management report to evaluate Manufacturing Overhead costs Bill and Lary want to help and have volunteered your services to provide some manageria reporting for Crestline. Crestine Pipe distributes high-quality PVC pipe and has the following infomation for the month of March, 2018 Crestline Pipe Manufacturing Overhead Budget (Static) For the Month of March, 2018 Budgeted production in LF117 Budgeted coss Indirect lobor (S0 .SO/Dug 10.575 Maintenance (50.2/Oug 5875 42.000 16.800 2.500 1.200 1300 Property tawes nsurance Total budgeted coss 92050 Crestline Pipe Manufacturing Overhead Costs (Actual) For the Month of March, 2018 Actual production in Actual costs 118.500 7.100 1.825 10.700 5.900 42.000 6 800 2500 1.200 1300 99.325 Indrect moterials Indrect lobor Salaries Property toxe nsurance Total budgeted costs Cresline Pipe hod the folowing static budget and overhead costs for March. Manufacturing overhead is budgeted based on direct labor hours (DLH). Direct lobor is budgeted at 12 minutes per lnear foot (UF)

Explanation / Answer

1) B & L Landscapes, Inc. Manufacturing Overhead Flexible Budget For the month of March 2018 Production in LF 115,500 116,500 117,500 118,500 119,500 Variable Cost Indirect materials ($0.30/DLH)/60 min X 12 min $6,930.00 $6,990.00 $7,050.00 $7,110.00 $7,170.00 Indirect labor ($0.50/DLH) /60 x 12 $11,550.00 $11,650.00 $11,750.00 $11,850.00 $11,950.00 Utilities ($0.45/DLH)/60 x 12 $10,395.00 $10,485.00 $10,575.00 $10,665.00 $10,755.00 Maintenance ($0.25/DLH)/60 x 12 $5,775.00 $5,825.00 $5,875.00 $5,925.00 $5,975.00 Total Variable Cost $34,650.00 $34,950.00 $35,250.00 $35,550.00 $35,850.00 Fixed Costs Salaries $42,000.00 $42,000.00 $42,000.00 $42,000.00 $42,000.00 Depreciation $16,800.00 $16,800.00 $16,800.00 $16,800.00 $16,800.00 Property taxes $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 Insurance $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 Janitorial $1,300.00 $1,300.00 $1,300.00 $1,300.00 $1,300.00 Total Fixed Cost $63,800.00 $63,800.00 $63,800.00 $63,800.00 $63,800.00 Total Budgeted Cost $98,450.00 $98,750.00 $99,050.00 $99,350.00 $99,650.00 B&L Landscapes, Inc Manufacturing Flexible Budget Report For March 31, 2018 Budget Actual Difference F/UF Production in LF 118500 118500 Variable Cost Indirect materials ($0.30/DLH)/60 min X 12 min $7,110.00 $7,100.00 $10.00 F Indirect labor ($0.50/DLH) /60 x 12 $11,850.00 $11,825.00 $25.00 F Utilities ($0.45/DLH)/60 x 12 $10,665.00 $10,700.00 -$35.00 UF Maintenance ($0.25/DLH)/60 x 12 $5,925.00 $5,900.00 $25.00 F Total Variable Cost $35,550.00 $35,525.00 $25.00 F Fixed Costs Salaries $42,000.00 $42,000.00 $0.00 Depreciation $16,800.00 $16,800.00 $0.00 Property taxes $2,500.00 $2,500.00 $0.00 Insurance $1,200.00 $1,200.00 $0.00 Janitorial $1,300.00 $1,300.00 $0.00 Total Fixed Cost $63,800.00 $63,800.00 $0.00 Total Budgeted Cost $99,350.00 $99,325.00 $25.00 F

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