20_DiscussionQuestions2 - ACCY 302 (Chen) Class 20 Fall...

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ACCY 302 (Chen) Class 20 Fall 2009 Banjo, Inc. The table below is the January performance report for the production manager of Banjo, Inc. The manufacturing plant that she manages is treated as a cost center, so the production manager is not responsible for sales results. However, she is responsible for hiring all workers at the plant. A purchasing manager is responsible for all purchases of materials and supplies used in production; he can choose vendors and the types of materials and supplies (so long as they are within product specifications). Banjo, Inc. Production Department Budget Performance Report For the Month Ended January 31 Actual * Master Budget ** Variance Production volume (in units) 3,185 3,000 185 F Variable manufacturing costs: Direct materials $ 24,843 $24,000 $ 843 U Direct labor 29,302 27,750 1,552 U Variable manufacturing overhead 35,035 33,300 1,735 U Total variable costs $ 89,180 $85,050 $4,130 U Fixed manufacturing costs: Depreciation 1,500 1,500 -- Taxes 300 300 -- Insurance 250 240 10 U Total fixed costs $ 2,050 $ 2,040 $ 10 U Total costs $91,230 $87,090 $4,140 U * The “actual” column reflects actual costs and actual output for the period. ** The “master budget” column reflects standard costs and budgeted output for the period.
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This note was uploaded on 11/08/2011 for the course ACCY 302 taught by Professor Staff during the Fall '08 term at University of Illinois, Urbana Champaign.

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20_DiscussionQuestions2 - ACCY 302 (Chen) Class 20 Fall...

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