Problem 22-3A (part level submission) Hill Company uses budgets in controlling c

Question

Problem 22-3A (part level submission) Hill Company uses budgets in controlling costs. The August 2014 budget report for the company's Assembling Department is as follows. HILL COMPANY Budget Report Assembling Department For the Month Ended August 31, 2014 Favorable ( Unfaverable (U) Neither Faverable ( Costs Actel hor t Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities 49,410 $48,410 58,560 55,570 26,230 26,400 24,400 23,980 21,350 21,160 290 181,810 $1,000 F 2,990 F 170 U 420 F 190 F 190 U Total variable Fixed costs Rent -0-N -0-N 0-N -0-N $4,240 F 10,070 10,070 18,160 18,160 590 34,820 220,870 216,630 6,590 34,820 Total fixed Total costs The monthly budget amounts in the report were based on an expected production of 61,000 units per month or 732,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 59,000 units were produced Your answer is correct. State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula . 3 34,820variable costs of 3. per unit. Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Hill Company   Flexible Budget Report for the month September Flexible Budget Data Actual Data Details Per unit $ Total Amt$ Per unit $ Total Amt$ Variance F/U/N Units Produced        65,000.00               65,000 Variable costs Direct Materials              0.81              52,650             0.82               53,251           601 U Direct Labor              0.96              62,400             0.94               61,127        1,273 F   Indirect Materials              0.43              27,950             0.45               29,040        1,090 U Indirect Labor              0.40              26,000             0.41               26,378           378 U Utilities              0.35              22,750             0.36               23,276           526 U Maintenance              0.10                 6,500             0.11                  6,919           419 U Total Variable              3.05            198,250             3.08             199,991        1,741 Fixed costs Rent              10,070               10,070               -   N Supervision              18,160               18,160               -   N Depreciation                 6,590                  6,590               -   N Total Fixed costs              34,820               34,820               -   N Total Costs            233,070             234,811        1,741 U

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.