Problem 25-03A a, bi, c (Part Level Submission) (Video) Sheffield Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. SHEFFIELD COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials Direct labor Indirect materials $57,200 $56,100 $1,100 Favorable 61,100 57,600 3,500 Favorable 26,000 26,100 100 Unfavorable 24,700 24,300 400 Favorable 19,500 19,330 170 Favorable 7,800 8,170 370 Unfavorable Indirect labor Utilities Maintenance Total variable 196,300 191,600 4,700 Favorable Fixed costs Rent 10,300 18,300 6,800 Supervision Depreciation 10,300 18,300 6,800 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Total fixed 35,400 35,400 -0- Neither Favorable nor Unfavorable Total costs $231,700 $227,000 $4,700 Favorable The monthly budget amounts in the report were based on an expected production of 65,000 units per month or 780,000 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 63,000 units were produced. (a) & (b) Your answer is correct. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is 35,400 3.02 + variable costs of $ per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) SHEFFIELD COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Units 63,000 63,000 Variable Costs Direct Materials 55,440 56,100 -660|Unfavorable $1 Direct Labor 59,220 57,600 1,620||Favorable Indirect Materials 25,200 26,100 -900|| Unfavorable Indirect Labor 23,940 24,300 -360 Unfavorable Utilities 18,900 19,330 -430 Unfavorable Maintenance 7,560 8,170 -610|| Unfavorable Total Variable Costs V 190,260 191,600 -1,340|| Unfavorable Fixed Costs Rent 10,300 10,300 0 Neither Favorable nor Unfavorable Supervision 18,300 18,300 0 Neither Favorable nor Unfavorable Depreciation 6,800 6,800 o Neither Favorable nor Unfavorable v Total Fixed Costs 35,400 35,400 0 Neither Favorable nor Unfavorable v Total Costs 225,660 227,000 -1,340 Unfavorable $ In September, 69,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fixed costs.) SHEFFIELD COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Units 69,000 69,000 Variable Costs Direct Materials Unfavorable Direct Labor Favorable Doblo ibtido Indirect Materials Unfavorable Indirect Labor Unfavorable Utilities Unfavorable Maintenance Unfavorable OD Total Variable Costs Unfavorable Fixed Costs Rent 10,300 10,300 o Neither Favorable nor Unfavorable v Supervision 18,300 18,300 0 Neither Favorable nor Unfavorable v Depreciation 6,800 6,800 0 Neither Favorable nor Unfavorable Total Fixed Costs 35,400 35,400 0 Neither Favorable nor Unfavorable v x Total Costs Unfavorable