Hill company uses budgets in controlling costs.

P24-3A Hill Company uses budgets in controlling costs. The August 2014 budget report for the company’s Assembling Department is as follows.

HILL COMPANY Budget Report Assembling Department For the Month Ended August 31, 2014
					Difference
Manufacturing Costs	Budget		Actual		Favorable (F) Unfavorable (U)
Variable costs
Direct materials	$54,000		$53,000			$1,000	F
Direct labor	55,800		52,710			3,090	F
Indirect materials	28,800		28,940			140	U
Indirect labor	19,800		19,330			470	F
Utilities	18,000		17,810			190	F
Maintenance	13,800		14,160			360	U
Total variable	190,200		185,950			4,250	F
Fixed costs
Rent	10,860		10,860			–0–
Supervision	18,100		18,100			–0–
Depreciation	7,520		7,520			–0–
Total fixed	36,480		36,480			–0–
Total costs	$226,680		$222,430			$4,250	F

 

The monthly budget amounts in the report were based on an expected production of 60,000 units per month or 720,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 58,000 units were produced.

 

State the total monthly budgeted cost formula. (Round variable cost per unit to 2 decimal places, e.g. 1.55.)

Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs. If answer is zero, please enter 0, do not leave any fields blank.)

In September, 64,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fixed costs. If answer is zero, please enter 0, do not leave any fields blank.)