Question

need help with excel

1 E24-4 Prepare flexible budget reports for mar W K 5 c L tal and are notipaataadhar cardammaaaa Thome Company uses a feble budget for manufacturing overhead based on direct labor hours Variable and acturing overhead costs per direct labor hour are as follows. Indirect labor $100 Indirect materia 0.60 Us 0.40 Foed overhead costs per month are supervision $4.000 depreciation, $1200, and property taves 1800 The company believes it vil normally operate in a range of 7,000 - 10.000 direct labor hours per month Using the formation above, assume that in July 2018, Thome Company nours the following manudacting overhead costs. Variable Cous Fred Costs Indirect labor 800 Supervision 14.000 Indirect materie Deprecision 1200 3.200 Property taves 800 Instre (a) Propar a fenible budget performance report, assuming that the company worked 9.000 direct labor hous during the month b) Prepare a feble budget performance report, ruming that the company worked 8.500 direct labor hous during the month to) Come on your findings NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells E24-4 Prepare flexible budget reports for D 1 THOME COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended 31, 2014 Diference Budget Actual Costs Favorable F 9.000 DLH 9.000 DLH Untavouable u Direct labor hours OLHO Variable costs Indirect labor VaRo Value Indirect werials VE Toral variable corte 7 7 Fred.com Supervision Value Depreciation Vaka VA Property wes VOU VAP VET Totalled costs 5.300 Total costs Ib THOME COMPANY Manufacturing Overhead Fleble Budget Report For the Month Ended by 31, 2014 Budget 8.500H ActualCosta 8.500 DLH Oference Favorable UnavobleU Value Vale THOME COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended 31 2014 Value Vse Budget 9.000 DLH Actual Costs 9.000 DUH Derence Favorable Unisable U Direct labor hours IOL Variable costs Indirect labor($1.000 Indirect materials (1060) Uties (1040) Total variable costs ($2.00 Fred costs Supervision Depreciation Propertywes Toledo Toront V VA Vh Drect labor hours OLHO Viable costs Indirect labor Indret wels Unities Total variable costs Fred corte 1. Thome.co Q2. Thome Co Q1 - Thome Co 03 - Dewitt Co 02. Thome Co 02. Rico

Answer 1

(a)			Thome company
		Manufacturing overhead flexible budget report
			For the month ended July 31,2014
							Difference
					Budget at	Actual at	Favorable F
					9000 DLH	9000 DLH	Unfavorable U
					a	b	c=a-b
	Direct labor hours (DLH)				9000	9000
	Variable costs:
	Indirect labor				9000	8800	200	F
					(9000*1)
	Indirect materials				5400	5300	100	F
					(9000*0.60)
	Utilities				3600	3200	400	F
					(9000*0.40)
	Total variable costs				18000	17300	700	F
	Fixed costs:
	Supervision				4000	4000	0
	Depreciation				1200	1200	0
	Property taxes				800	800	0
	Total fixed costs				6000	6000	0
	Total costs				24000	23300	700	F
	If c is positive variance is favorable.Otherwise unfavorable
(b)			Thome company
		Manufacturing overhead flexible budget report
			For the month ended July 31,2014
							Difference
					Budget at	Actual at	Favorable F
					8500 DLH	8500 DLH	Unfavorable U
					a	b	c=a-b
	Direct labor hours (DLH)				8500	8500
	Variable costs:
	Indirect labor				8500	8800	300	U
					(8500*1)
	Indirect materials				5100	5300	200	U
					(8500*0.60)
	Utilities				3400	3200	200	F
					(8500*0.40)
	Total variable costs				17000	17300	300	U
	Fixed costs:
	Supervision				4000	4000	0
	Depreciation				1200	1200	0
	Property taxes				800	800	0
	Total fixed costs				6000	6000	0
	Total costs				23000	23300	300	U
	If c is positive variance is favorable.Otherwise unfavorable
(c )	In case of (a), actual costs are less than the flexible budget costs which results in a total favorable variance of $700
	The company has performed better than expected.