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 $8, direct labor $13, and overhead $19. Monthly budgeted fixed manufacturing overhead costs are $7,700 for depreciation and $3,600 for supervision. In the current month, Wade actually produced 6,500 units and incurred the following costs: direct materials $44,784, direct labor $76,700, variable overhead $122,550, depreciation $7,700, and supervision $3,852. 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
		Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs
DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs
Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Units Produced Variable Costs		$		$		$	FavorableUnfavorableNeither Favorable nor Unfavorable
Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Units Produced Variable Costs							FavorableUnfavorableNeither Favorable nor Unfavorable
Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Units Produced Variable Costs							FavorableUnfavorableNeither Favorable nor Unfavorable
Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Units Produced Variable Costs							FavorableUnfavorableNeither Favorable nor Unfavorable
DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs
Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Units Produced Variable Costs							FavorableUnfavorableNeither Favorable nor Unfavorable
Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Units Produced Variable Costs							FavorableUnfavorableNeither Favorable nor Unfavorable
Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Units Produced Variable Costs							FavorableUnfavorableNeither Favorable nor Unfavorable
DepreciationDirect LaborDirect MaterialsFixed CostsOverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUnits ProducedVariable Costs		$		$		$	FavorableUnfavorableNeither Favorable nor Unfavorable

Were costs controlled?

YesNo