Bradley, Inc.'s cost accountant prepared the following monthly performance report for the Finishing Department: Budgeted Production (6,000
Question:
Bradley, Inc.'s cost accountant prepared the following monthly performance report for the Finishing Department:
Budgeted Production (6,000 Pieces) | Actual Production (6.500 Pieces) | |
Direct Ingredients Used | 90.000 | 99.600 |
direct labor | 48.000 | 55.200 |
Variable Production Overhead | 6.000 | 9.000 |
Fixed Production Cost | 66.000 | 64.200 |
(a) Calculate the quantities that should be included for each of the following in a flexible budget for a production level of 6,500 units:
(1) Direct materials: $_______________
(2) Direct labor: $_______________
(3) Variable overall production load: $_______________
(4) Fixed production load: $_______________
(b) Suppose a revised performance report is prepared for the production level of 6,500 units using the flexible budget approach. Calculate the cost differences for each of the following. Indicate whether each variance is positive (F) or negative (U).
(1) Direct materials: $_______________
(2) Direct labor: $_______________
(3) Variable overall production load: $_______________
(4) Fixed production load: $_______________
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello