Question - The following budgeted and actual volume and cost data are for Marchof this year:
|
Budget
|
Actual
|
|
Volume
|
40,000
|
36,000
|
|
Budgeted manufacturing costs:
|
|
|
|
Variable costs per unit:
|
|
|
|
Direct materials
|
$30.00
|
|
|
Direct labor
|
15.00
|
|
|
Overhead
|
5.00
|
|
|
Total fixed overhead costs
|
$400,000
|
|
|
Actual manufacturing costs:
|
|
|
|
Direct materials
|
|
$1,160,000
|
|
Direct labor
|
|
580,000
|
|
Variable overhead
|
|
180,000
|
|
Fixed overhead
|
|
396,000
|
Prepare a static (40,000) budget analysis of production costs for March of this year.
Prepare a flexible (36,000) budget analysis of production costs for March of this year.