Question

Question 4 Bridgeport Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. BRIDGEPORT COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Budget Actual Favorable Unfavorable Manufacturing Costs Variable costs Direct materials Direct labor Indirect materials Indirect labor $53,760 61,440 29,440 21,760 22,400 11,520 200,320 $52,760 58,240 29,640 21,310 22,200 11,780 195,930 $1,000 Favorable 3,200 Favorable 200 Unfavorable 450 Favorable 200 Favorable 260 Unfavorable 4,390 Favorable Utilities Maintenance Total variable Fixed costs Rent Supervision Depreciation 10,800 18,600 5,500 10,800 18,600 5,500

b1) bridget company

assembling department

Flexible Budget Report

For the Month Ending August 31,2017

c) bridget company

assembling department

Flexible Budget Report

For the Month Ending September 30,2017

Answer 1

Requirement Cost Formula for Budgeted Costs Since, the budgets are based on 64,000 units per month. The total variable costs of $ 200,320 shall be divided by 64,000 units to arrive at variable cost per unit. So, the Variable Cost per Unit = $ 200,320 = 64,000 Units = $ 3.13 per Unit. So, the Cost Formula = $ 34,900 + variable costs of $ 3.13 per Unit Requirement Flexible Budget Bridgeport Company Assembling Department Flexible Budget Report For the Month Ended August 31, 2017 Particulars Budget Actual Units 62,000 62,000 Difference A A A Variable Costs : Direct Materials Direct Labor Indirect Materials Indirect Labor Utilities Maintenance Total Variable Expenses 52,080 59,520 28,520 21,080 21,700 11,160 1,94,060 52,760 $ 58,240 29,640 21,310 22,200 11,780 $ 1,95,930 $ 680 Unfavorable 1,280 Favorable 1,120 Unfavorable 230 Unfavorable 500 Unfavorable 620 Unfavorable 1,870 A A A $ $ $ $ A - Fixed Costs : Rent Supervision Depreciation Total Fixed Costs $ $ 10,800 18,600 5,500 34,900 10,800 $ 18,600 $ 5,500 34,900 $ Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable $ - Total Costs $ 2,28,960 $ 2,30,830 $ 1,870 Unfavorable

Requirement Flexible Budget for September Bridgeport Company Assembling Department Flexible Budget Report For the Month Ended September 30, 2017 Particulars Budget Actual Units 68,000 68,000 Difference Variable Costs : Direct Materials Direct Labor Indirect Materials Indirect Labor Utilities Maintenance Total Variable Expenses 57,120 65,280 31,280 23,120 $ 23,800 $ 12,240 $ 2,12,840 $ 58,036 $ 64,064 32,604 23,441 24,420 $ 12,958 $ 2,15,523 $ 916 Unfavorable 1,216 Favorable 1,324 Unfavorable 321 Unfavorable 620 Unfavorable 718 Unfavorable 2,683 $ Fixed Costs : Rent Supervision Depreciation Total Fixed Costs - - 10,800 $ 18,600 $ 5,500 $ 34,900 $ 10,800 $ 18,600 $ 5,500 34,900 $ जीजीपी Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable Total Costs $ 2,47,740 $ 2,50,423 $ 2,683 Unfavorable