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 Wages Utilities Depreciation Total $985,000 62,000 103,000 $1,150,000 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 May 113,000 June 103,000 July 93,000 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 1,150,000. 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: $1,085,000 1,037,000 992,000 Wages per hour Utility cost per direct labor hour Direct labor hours per unit Planned monthly unit production $16.00 $1.00 0.50 124,000 a. Prepare a flexible budget for the actual units produced for May, June, and July in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places.

The production budget for Manner Company shows units to produce as follows: July, 650; August, 710; and September, 570. 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 650 August 710 September 570 units hs

Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 6,200 hours. Variable costs:        Indirect factory wages $20,460      Power and light 13,826      Indirect materials 11,346       Total variable cost   $45,632 Fixed costs:        Supervisory salaries $10,410      Depreciation of plant and equipment 26,700      Insurance and property taxes 8,150       Total fixed cost   45,260 Total factory overhead cost   $90,892 During May, the department operated at 6,600 standard hours. The factory overhead costs incurred were indirect factory wages, $22,000; power and light, $14,450; indirect materials, $12,300; supervisory salaries, $10,410; depreciation of plant and equipment, $26,700; and insurance and property taxes, $8,150. Required: Prepare a factory overhead cost…

Starts Inc. using production levels of 62,000, 67,200, and 69,300 units produced. The following additional information is necessary to complete the budget.  Prepare a flexible production budget for the year ending December 31 for :Variable costs:             Direct labor ($18.00 per unit)   Direct materials ($5.00 per unit)   Variable manufacturing costs ($8.00 per unit) ​ Fixed costs:   Supervisor’s salaries $27,000   Rent 18,000   Depreciation on equipment 82,000