Vaughn Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling...

  
 
 
 
 
 

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Vaughn Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. Direct materials Direct labor Indirect materials Indirect labor Utilities Manufacturing Costs Budget Actual Variable costs Maintenance Total variable Fixed costs Rent Supervision Depreciation Total fixed VAUGHN COMPANY Budget Report Total costs Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable $54,180 $53,080 $1,100 Favorable 60,480 57,080 3,400 Favorable 30,240 30,440 200 Unfavorable 21,420 21,020 400 Favorable 18,900 18,800 100 Favorable 10,080 10,440 360 Unfavorable 195,300 190,860 4,440 Favorable 11,100 11,100 16,000 16,000 6,800 6,800 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable 33,900 33,900 -0- Neither Favorable nor Unfavorable $229,200 $224,760 $4,440 Favorable The monthly budget amounts in the report were based on an expected production of 63,000 units per month or 756,000 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 61,000 units were produced. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is + variable costs of $ per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) + - + + + $ Budget VAUGHN COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Actual Costs $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable + + + + + + + + $ $ $ + + + + + In September, 67,000 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.) + + + + + $ VAUGHN COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Budget Actual Costs $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable # + + + + $ $ + + + + + Vaughn Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. Direct materials Direct labor Indirect materials Indirect labor Utilities Manufacturing Costs Budget Actual Variable costs Maintenance Total variable Fixed costs Rent Supervision Depreciation Total fixed VAUGHN COMPANY Budget Report Total costs Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable $54,180 $53,080 $1,100 Favorable 60,480 57,080 3,400 Favorable 30,240 30,440 200 Unfavorable 21,420 21,020 400 Favorable 18,900 18,800 100 Favorable 10,080 10,440 360 Unfavorable 195,300 190,860 4,440 Favorable 11,100 11,100 16,000 16,000 6,800 6,800 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable 33,900 33,900 -0- Neither Favorable nor Unfavorable $229,200 $224,760 $4,440 Favorable The monthly budget amounts in the report were based on an expected production of 63,000 units per month or 756,000 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 61,000 units were produced. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is + variable costs of $ per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) + - + + + $ Budget VAUGHN COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Actual Costs $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable + + + + + + + + $ $ $ + + + + + In September, 67,000 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.) + + + + + $ VAUGHN COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Budget Actual Costs $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable # + + + + $ $ + + + + +