question archive Flexible Budget for Varying Levels of Activity Nashler Company has the following budgeted variable costs per unit produced: Direct materials $7
Subject:AccountingPrice: Bought3
Flexible Budget for Varying Levels of Activity
Nashler Company has the following budgeted variable costs per unit produced:
Direct materials | $7.20 |
Direct labor | 1.54 |
Variable overhead: | |
Supplies | 0.23 |
Maintenance | 0.19 |
Power | 0.18 |
Budgeted fixed overhead costs per month include supervision of $98,000, depreciation of $76,000, and other overhead of $245,000.
In March, Nashler Company produced 170,000 units and had the following actual costs:
Direct materials | $1,220,000 |
Direct labor | 268,300 |
Supplies | 39,700 |
Maintenance | 32,250 |
Power | 30,520 |
Supervision | 99,400 |
Depreciation | 76,000 |
Other overhead | 244,300 |
Required:
1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. If there is no variance, enter "0" for the amount and select "NA" in the last column.
Actual Cost | Flexible Budget Cost | Variance | ||
---|---|---|---|---|
Direct materials | $- Select - | $- Select - | $- Select - |
FavorableUnfavorableNA |
Direct labor | - Select - | - Select - | - Select - |
FavorableUnfavorableNA |
Supplies | - Select - | - Select - | - Select - |
FavorableUnfavorableNA |
Maintenance | - Select - | - Select - | - Select - |
FavorableUnfavorableNA |
Power | - Select - | - Select - | - Select - |
FavorableUnfavorableNA |
Supervision | - Select - | - Select - | - Select - |
FavorableUnfavorableNA |
Depreciation | - Select - | - Select - | - Select - |
FavorableUnfavorableNA |
Other overhead | - Select - | - Select - | - Select - |
FavorableUnfavorableNA |
Total cost | $- Select - | $- Select - | $- Select - |
FavorableUnfavorableNA |
2. What if Nashler Company's actual direct materials cost were $1,224,000? How would that affect the variance for direct materials? If an amount is zero, enter "0".
The materials variance would be $fill in the blank fc4978064fce040_1.
The total cost variance would
increasedecrease
by $fill in the blank fc4978064fce040_3.