Question - The following budgeted and actual volume and cost data are for January of this year:
|
Budget
|
Actual
|
|
Volume
|
20,000
|
18,000
|
|
Budgeted manufacturing costs:
|
|
|
|
Variable costs per unit:
|
|
|
|
Direct materials
|
$40.00
|
|
|
Direct labor
|
12.00
|
|
|
Overhead
|
2.25
|
|
|
Total fixed overhead costs
|
$150,000
|
|
|
Actual manufacturing costs:
|
|
|
|
Direct materials
|
|
$1,320,000
|
|
Direct labor
|
|
396,000
|
|
Variable overhead
|
|
82,000
|
|
Fixed overhead
|
|
175,000
|
a. Prepare a static budget analysis of production costs for January of this year.
b. Prepare a flexible budget analysis of production costs for January of this year.