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C24_WCP solution_SV

# C24_WCP solution_SV - Waterways Corporation Manufacturing...

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SOLUTION Chapter 24 Waterways Continuing Problem WCP 24 (a) Waterways Corporation Manufacturing Overhead Flexible Budget For the Month of March Production in units 115,500 116,500 117,500 118,500 119,500 Variable costs Indirect materials(\$.06/unit a) \$ 6,930 \$ 6,990 \$ 7,050 \$ 7,110 \$ 7,170 Indirect labor (\$.10/unit b) 11,550 11,650 11,750 11,850 11,950 Utilities (\$.09/unit c) 10,395 10,485 10,575 10,665 10,755 Maintenance (\$.05/unit d) 5,775 5,825 5,875 5,925 5,975 Total Variable Costs 34,650 34,950 35,250 35,550 35,850 Fixed Costs Salaries 42,000 42,000 42,000 42,000 42,000 Depreciation 16,800 16,800 16,800 16,800 16,800 Property taxes 2,500 2,500 2,500 2,500 2,500 Insurance 1,200 1,200 1,200 1,200 1,200 Janitorial 1,300 1,300 1,300 1,300 1,300 Total Fixed Costs 63,800 63,800 63,800 63,800 63,800 Total budgeted costs \$ 98,450 \$ 98,750 \$ 99,050 \$99,350 \$ 99,650 Unit costs are based on the static budget costs. a. \$7,050 / 117,500 units = \$0.06 / unit b. \$11,750 / 117,500 units = \$0.10 / unit c. \$10,575 / 117,500 units = \$0.09 / unit d. \$5,875 / 117,500 units = \$0.05 / unit (b)

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Unformatted text preview: Waterways Corporation Manufacturing Overhead Flexible Budget Report For the Month of March Budget Actual Difference Favorable Production in units 118,500 118,500 Unfavorable Variable costs Indirect materials \$ 7,110 \$ 7,100 \$ 10 F Indirect labor 11,850 11,825 25 F Utilities 10,665 10,700 35 U Maintenance 5,925 5,900 25 F Total Variable Costs 35,550 35,525 25 F Fixed Costs Salaries 42,000 42,000 Depreciation 16,800 16,800 Property taxes 2,500 2,500 Insurance 1,200 1,200 24-1 Janitorial 1,300 1,300 Total Fixed Costs 63,800 63,800 Total budgeted costs \$ 99,350 \$ 99,325 \$ 25 F 24-2 (c) Waterways Corporation Responsibility Report Manufacturing Overhead For the Month of March Controllable Cost Budget Actual Difference Favorable Unfavorable Indirect materials \$ 7,110 \$ 7,100 \$ 10 F Indirect labor 11,850 11,825 \$ 25 F Utilities 10,665 10,700 \$ 35 U Maintenance 5,925 5,900 \$ 25 F \$ 35,550 \$ 35,525 \$ 25 F 24-3...
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C24_WCP solution_SV - Waterways Corporation Manufacturing...

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