Question

Do It! Review 10-1 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 $7, direct labor $13, and overhead $18. Monthly budgeted fixed manufacturing overhead costs are $8,000 for depreciation and $3,800 for supervision. In the current month, Wade actually produced 6,500 units and incurred the following costs: direct materials $38,850, direct labor $76,440, variable overhead $116,640, depreciation $8,000, and supervision $4,000. 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 Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual

Answer 1

WADE COMPANY Static Budget Report Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Produced units Variable expenses: Direct material Direct Labor Variable over head Total variable expenses 500 Favorable 6000 6500 -3150 Favorable -1600 Favorable 8640 UnFavorable 3890 UnFavorable 42000 38850 78000 76400 108000 116640 231890 228000 Fixed expenses: Depreciation Supervision Total Fixed expenses Total Manufacturing cost 0NF nor UNF 200 UnFavorable 200 UnFavorable 4090 UnFavorable 8000 8000 3800 4000 11800 12000 239800 243890 Were cost controlled NO