Question

CALOURATOR PRINTER VERSION BACK NE Problem 10-3A a, b1, c (Part Level Submission) (Video) Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorabl Manufacturing Costs Budget Actual Variable costs Direct materials $49,600 $48,500 $1,100 Favorable 57,040 27,280 Direct labor 54,040 3,000 Favorable 300 Unfavorable Indirect materials 27,580 Indirect labor 22,320 21,910 410 Favorable Utilities 15,500 15,390 110 Favorable Maintenance 7,630 179,180 175,050 4,130 Favorable 190 Unfavorable 7,440 Total variable Fixed costs Rent 11,500 11,500 -0- Neither Favorable nor Unfavorable Supervision -0- Neither Favorable nor Unfavorable 17,100 17,100 -0-Neither Favorable nor Unfavorable Depreciation 7,100 7,100 Total fixed 35,700 35,700 -0- Neither Favorable nor Unfavorable $214,880 $210,750 $4,130 Favorable Total costs The monthly budget amounts in the report were based on an expected production of 62,000 units per month or 744,000 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 60,000 units were produced.

Answer 1

Solution:

C D E 27 28 29 30 31 32 33 Ratchet Assembling Department Flexible budget report For the month ended September 30, 2020 Budget Actual cost Difference Favorable / Unfavorable / Neither favorable nor unfavorable 66000 66000 Particulars 34 35 Units of Production 36 37 39 40 41 $52,800.00 $53,350.00 $60,720.00 $59,444.00 $29,040.00 $30,338.00 $23,760.00 $24,101.00 $16,500.00 $16,929.00 $7,920.00 $8,393.00 $190,740.00 $192,555.00 Variable overhead costs: Direct materials Direct Labor Indirect Materials Indirect labor Utilities Maintenance Total Variable Fixed costs: Rent Supervision Depreciation Total Fixed $550.00 Unfavorable $1,276.00 Favorable $1,298.00 Unfavorable $341.00 Unfavorable $429.00 Unfavorable $473.00 Unfavorable $1,815.00 Unfavorable 42 43 45 46 47 48 $11,500.00 $17,100.00 $7,100.00 $35,700.00 $11,500.00 $17,100.00 $7,100.00 $35,700.00 $0.00 Neither Favorable nor Unfavorable $0.00 Neither Favorable nor Unfavorable $0.00 Neither Favorable nor Unfavorable $0.00 Neither Favorable nor Unfavorable Total Costs $226,440.00 $228,255.00 $1,815.00 Unfavorable 57 59 62 63 64 65 66 70 71 72 73 74 75 76 דר et818 Sheet335 (8) ) Sheet763 ) Sheet769 Sheet800