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Wiley Plus Topic 07 Assignment -Ch 13-14 ...

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Accounting

Wiley Plus Topic 07 Assignment -Ch 13-14
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Bramble Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. BRAMBLE COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Manufacturing Costs Budget Actual Unfavorable Variable costs Direct materials $49,600 $48,500 $1,100 Favorable Direct labor 57,040 54,040 3,000 Favorable Indirect materials 27.280 27,580 300 Unfavorable Indirect labor 22,320 21,910 410 Favorable Utilities 15,500 15,390 110 Favorable Maintenance 7,440 7,630 190 Unfavorable Total variable 179,180 175,050 4,130 Favorable Fixed costs Rent 11,500 11,500 -0- Supervision 17,100 17.100 -0- Depreciation 7.100 7.100 -0- Total fixed 35.700 35,700 -0- Total costs $214,880 $210.750 $4,130 Favorable The monthly budget amounts in the report were based on an expected production of 62,000 units per month or 744,000 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 60,000 units were produced Question 4 of 4

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