Do It! Review 22-1 Wade Company estimates that it will produce 6,000 units of pr

Question

Do It! Review 22-1 Wade Company estimates that it will produce 6,000 units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $8, direct labor $13, and overhead $19. Monthly budgeted fixed manufacturing overhead costs are $7,700 for depreciation and $3,700 for supervision In the current month, Wade actually produced 6,500 units and incurred the following costs: direct materials $45,000, direct labor $76,400, variable overhead $122,100, depreciation $7,700, and supervision $3,940 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.)

Explanation / Answer

Budget Actual Difference Units 6000 6500 Variable costs: Direct materials 48000 45000 3000 Favorable Direct labor 78000 76400 1600 Favorable Overhead 114000 122100 8100 Unfavorable Total Variable costs 240000 243500 3500 Unfavorable Fixed costs: Depreciation 7700 7700 0 Neither favorable nor Unfavorable Supervision 3700 3940 240 Unfavorable Total Fixed costs 11400 11640 240 Unfavorable Total costs 251400 255140 3740 Unfavorable No, costs were not controlled

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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