Wade Company estimates that it will produce 6,400 units of product IOA during th

Question

Wade Company estimates that it will produce 6,400 units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $6, direct labor $11, and overhead $19. Monthly budgeted fixed manufacturing overhead costs are $7,900 for depreciation and $4,400 for supervision.

In the current month, Wade actually produced 6,900 units and incurred the following costs: direct materials $35,400, direct labor $69,100, variable overhead $130,200, depreciation $7,900, and supervision $4,620.

Prepare a static budget report. Hint: The Budget column is based on estimated production while the Actual column is the actual cost incurred during the period. (List variable costs before fixed costs.)

Wade Company
Static Budget Report

Difference

Budget

Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

Were costs controlled?

Wade Company
Static Budget Report

Difference

Budget

Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs

DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs

DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs

$

$

$

FavorableUnfavorableNeither Favorable nor Unfavorable

DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs

FavorableUnfavorableNeither Favorable nor Unfavorable

DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs

FavorableUnfavorableNeither Favorable nor Unfavorable

DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs

FavorableUnfavorableNeither Favorable nor Unfavorable

DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs

DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs

FavorableUnfavorableNeither Favorable nor Unfavorable

DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs

FavorableUnfavorableNeither Favorable nor Unfavorable

DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs

FavorableUnfavorableNeither Favorable nor Unfavorable

DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs

$

$

$

FavorableUnfavorableNeither Favorable nor Unfavorable

Explanation / Answer

Wade Company Static Budget Report Budget Actual Difference Variable expense direct materials 6 38400 35,400 3,000 F Direct labor 11 70400 69,100 1,300 F overhead 19 121600 130,200 8,600 U total variable expense 230400 234,700 4,300 U Fixed expense Depreciation 7,900 7,900 0 N Supervision 4,400 4,620 220 U total fixed expense 12,300 12,520 220 U total cost 242,700 247,220 4,520 U

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