TEST #5 CHS 9&10 1 Check myw for his poor performance over the prior month. The

Question

TEST #5 CHS 9&10 1 Check myw for his poor performance over the prior month. The department's cost control report is given below 42,000 89,200$3,000 29,300 25,600 23,300 57,000 26.4002.900 23,300 2,300 21,9001,400 u 57,000 tilities ma 99,000 326,400 316,800 $9,600 boss called me in, I thought he was going to give me a pat on the back because I know for a fact that my department worked more y last month than it has ever worked before. Instead, he tore me apart. I thought for a minute that it might be over the supplies that were stolen out of our warehouse last month. But they only amounted to a couple of hundred dollars, and just look at this report. Everything is unfavorable Direct labor wages and supplies are variable costs; supervision and depreciation are fixed costs; and maintenance and utilities are mixed costs. The fixed component of the budgeted maintenance cost is $18,500; the fixed component of the budgeted utilities cost is $14.400. 2. Complete the performance report that will help Mr. Weston's s department. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F for favorable, "U" for unfavorable, and "None" for no effect (i.e. zero variance). Input all amounts as positive values.) Bu 40.000

Explanation / Answer

FLEXIBLE BUDGET PERFORMANCE REPORT

FOR THE MONTH ENDED JUNE 30

variable maintenance cost = [23300-18500]=4800/40000 = $ .12

variable utilities =[21900-14400]= 7500/40000 =$ .1875

**Maintenance cost at 42000 = [.12*42000]+18500 = 23540

utilities cost =[.1875*42000]+14400= 22275

FLEXIBLE BUDGET PERFORMANCE REPORT

FOR THE MONTH ENDED JUNE 30

Actual results Flexible budget Planning budget machine hours 42000 40000 Direct labor wages 92200 1460 F 93660    [89200*42000/40000] 4460 U 89200 supplies 29300 1580 U 27720      [26400*42000/40000] 1320 U 26400 maintenance 25600 2060 U 23540 240 U 23300 utilities 23300 1025 U 22275 375 U 21900 supervision 57000 0 NA 57000 0 NA 57000 depreciation 99000 0 NA 99000 0 NA 99000 Total 326400 3205 U 323195 6395 U 316800

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