Static Budget versus Flexible Budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: Hagerstown Company Machining Department Monthly Production Budget $420,000 Wages Utilities 23,000 Depreciation 38,000 $481,000 Total The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced $453,000 Мay 70,000 June 428,000 63,000 July 409,000 57,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for May-July have been significantly less than the monthly static budget of 481,000. 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 Machining Department. Additional budget information for the Machining Department is as follows: Wages per hour $22.00 Utility cost per direct labor hour $1.20 Direct labor hours per unit 0.25

Tucker Inc. is preparing its Manufacturing Overhead Budget for the Quarter based on the following production in units.                                               April               May                    June           QuarterProduction in units               20,000             10,000             15,000               45,000Tucker Inc. uses a variable manufacturing overhead rate of $2.50 per unit produced                    Fixed manufacturing overhad is $40,000 per month and includes $20,000 of non-cash costs (depreciation of plant assets). The total Variable Manufacturing Overhead cost for the quarter is:                 The total Fixed Manufacturing Overhead cost for the quarter is:                 Thet total Manufacturing Overhead costs for the quarter is:                 The total Cash disbursements for manufacturing overhead for the quarter is

Performance Report Based on Budgeted and Actual Levelsof ProductionBowling Company budgeted the following amounts:Variable costs of production:Direct materials 3 pounds @ $0.60 per poundDirect labor 0.5 hr. @ $16.00 per hourVOH 0.5 hr. @ $2.20FOH:Materials handling $6,200Depreciation $2,600 At the end of the year, Bowling had the following actual costs for production of 3,800 units:Direct materials $ 6,800Direct labor 30,500VOH 4,200FOH:Materials handling 6,300Depreciation 2,600Required:1. Calculate the budgeted amounts for each cost category listed above for the 4,000budgeted units.2. Prepare a performance report using a budget based on expected production of 4,000units.3. Prepare a performance report using a budget based on the actual level of production of3,800 units.

Shawke Company's partially completed flexible overhead budget for the current period follows. This budget is based on its predicted activity of 50% of productive capacity. Complete its flexible overhead budgets for the current period using 1,950, 3,900, and 5,850 units of productive capacity. For Year Ended December 31 Production (in units) Overhead costs Total variable overhead Total fixed overhead Total overhead costs Flexible Overhead Budgets Total Fixed Cost Variable Amount per Unit $ 12 $ 17,900 Flexible Budget at Capacity Level of 25% 50% 75% 1,950 3,900 5,850

Courington Detailing's cost formula for its materials and supplies is $1,890 per month plus $8 per vehicle. For the month of August, the company planned for activity of 84 vehicles, but the actual level of activity was 49 vehicles. The actual materials and supplies for the month was $2,450. The materials and supplies in the flexible budget for August would be closest to: Multiple Choice $2,450 $1,417 $2,562 $2,282

At the beginning of the period, the Cutting Department budgeted direct labor of $128,000, direct materials of $163,000 and fixed factory overhead of $14,000 for 8,000 hours of production. The department actually completed 10,200 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations. Oa. $385,025 Ob. $308,850 Oc. $388,875 Od. $305,000 ......

Monthly budgeted fixed overhead cost?