FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The production supervisor of the Painting Department for Whitley Company agreed to the following monthly static budget for the upcoming year:
| WHITLEY COMPANY Painting Department Monthly Production Budget |
|
| Wages | $214,000 |
| Utilities | 20,000 |
| 33,000 | |
| Total | $267,000 |
The actual amount spent and the actual units produced in the first three months in the Painting Department were as follows:
| Amount Spent | Units Produced | |||
| January | $252,000 | 56,000 | ||
| February | 242,000 | 51,000 | ||
| March | 232,000 | 46,000 |
The Painting Department supervisor has been very pleased with this performance, since actual expenditures have been less than the monthly budget. However, the plant manager believes that the budget should not remain fixed for every month but should "flex" or adjust to the volume of work that is produced in the Painting Department. Additional budget information for the Painting Department is as follows:
| Wages per hour | $14.00 |
| Utility cost per direct labor hour | $1.30 |
| Direct labor hours per unit | 0.25 hrs. |
| Planned unit production | 61,000 units |
a. Prepare a flexible budget for the actual units produced for January, February, and March in the Painting Department. Assume depreciation is a fixed cost. Enter all amounts as positive numbers. If required, round per unit amounts to the nearest cent.
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- Please show calculationarrow_forwardAt the beginning of the period, the Fabricating Department budgeted direct labor of $123,500 and equipment depreciation of $34,000 for 6,500 hours of production. The department actually completed 8,600 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.$fill in the blank 1arrow_forwardThe production budget for Manner Company shows units to produce as follows: July, 700; August, 760; and September, 620. Each unit produced requires one hour of direct labor. The direct labor rate is budgeted at $17 per hour in July and August, but is budgeted to be $17.75 per hour in September. Prepare a direct labor budget for the months July, August, and September. Units to produce Direct labor hours needed Cost of direct labor MANNER COMPANY Direct Labor Budget July 700 August 760 September 620 unitsarrow_forward
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