ACTG2020_Week8 Ch9_2014

00 depreciation insurance total fixed cost total

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Unformatted text preview: Total Fixed Cost Machine hours V ariable costs Indirect labour Indirect material Power Total variable cost Fixed costs Depreciation Insurance Total fixed cost Total overhead costs Flexible Budgets 8,000 10,000 12,000 Hours Hours Hours 8,000 $ $ 4.00 3.00 0.50 7.50 10,000 12,000 $ 32,000 24,000 4,000 $ 60,000 $ 12,000 2,000 $ 12,000 2,000 $ 14,000 $ 74,000 LO 3 Preparing a Flexible Budget CheeseCo Cost Formula per Hour Total Fixed Cost Machine hours V ariable costs Indirect labour Indirect material Power Total variable cost Fixed costs Depreciation Insurance Total fixed cost Total overhead costs Flexible Budgets 8,000 10,000 12,000 Hours Hours Hours 8,000 $ $ 10,000 4.00 $ 32,000 3.00 24,000 Total fixed costs 0.50 4,000 do not change in 7.50 $ 60,000 $ 40,000 30,000 5,000 $ 75,000 the relevant range. $ 12,000 2,000 $ 12,000 2,000 $ 14,000 $ 74,000 $ 12,000 2,000 $ 14,000 $ 89,000 12,000 ? LO 3 Preparing a Flexible Budget Cost Formula per Hour Total Fixed Cost Machine hours Variable costs Indirect labour Indirect material Power Total variable cost Fixed costs Depreciation Insurance Total fixed cost Total overhead costs Flexible Budgets 8,000 10,000 12,000 Hours Hours Hours 8,000 $ $ $ 12,000 2,000 12,000 $ 32,000 24,000 4,000 $ 60,000 4.00 3.00 0.50 7.50 10,000 $ 40,000 30,000 5,000 $ 75,000 $ 48,000 36,000 6,000 $ 90,000 $ 12,000 2,000 $ 14,000 $ 74,000 $ 12,000 2,000 $ 14,000 $ 89,000 $ 12,000 2,000 $ 14,000 $ 104,000 LO 3 Flexible Budget Performance Report CheeseCo Flexible budget Cost is prepared for the Formula per Hour same activity level (8,000 hours) as Machine hours actually Variable costs achieved. Indirect labour Indirect material Power Total variable cost Fixed costs Depreciation Insurance Total fixed cost Total overhead costs $ $ Total Fixed Cost Actual Results 8,000 4.00 3.00 0.50 7.50 Flexible Budget 8,000 Variances 0 $ 34,000 25,500 3,800 $ 63,300 $ 12,000 2,000 $ 12,000 2,050 $ 14,050 $ 77,350 LO 4 Flexible Budget Performance Report CheeseCo Cost Formula per Hour Total Fixed Cost Variable costs Indirect labour Indirect material Power Total variable cost...
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