Hill Company uses budgets in controlling costs. The August 2014 budget report for the companyAc€?

Hill Company uses budgets in controlling costs. The August 2014
budget report for the companyAc€?cs Assembling Department is as
follows.

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HILL COMPANY
Budget Report
Assembling Department
For the Month Ended August 31, 2014

Difference

Manufacturing Costs

Budget

Actual

Favorable (F)
Unfavorable (U)
Neither Favorable
nor Unfavorable (N)

Variable costs
   Direct materials

$56,700

$55,600

$1,100

F
   Direct labor

58,590

55,220

3,370

F
   Indirect materials

26,460

26,740

280

U
   Indirect labor

24,570

24,080

490

F
   Utilities

17,010

16,820

190

F
   Maintenance

8,820

9,300

480

U
      Total variable

192,150

187,760

4,390

F
Fixed costs
   Rent

11,190

11,190

Ac€?o0Ac€?o

N
   Supervision

16,110

16,110

Ac€?o0Ac€?o

N
   Depreciation

6,250

6,250

Ac€?o0Ac€?o

N
      Total fixed

33,550

33,550

Ac€?o0Ac€?o

N
Total costs

$225,700

$221,310

$4,390

F

The monthly budget amounts in the report were based on an expected
production of 63,000 units per month or 756,000 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 61,000 units were produced.

State the total monthly budgeted cost formula.
(Round cost per unit to 2 decimal places, e.g.
1.25.)

The formula = $ +
variable costs of $ per
unit.

LINK TO TEXT

LINK TO VIDEO

Prepare a budget report for August using flexible budget data.
(List variable costs before fixed
costs.)

HILL COMPANY
Assembling Department
Flexible Budget Report
For the Month Ended August 31, 2012

Difference

Budget

Actual Costs

Favorable (F)
Unfavorable (U)
Neither Favorable
nor Unfavorable (N)


DepreciationDirect LaborDirect MaterialsFixed CostsIndirect
LaborIndirect MaterialsMaintenanceRentSupervisionTotal CostsTotal
Fixed CostsTotal Variable CostsUnitsUtilitiesVariable Costs


DepreciationDirect LaborDirect MaterialsFixed CostsIndirect
LaborIndirect MaterialsMaintenanceRentSupervisionTotal CostsTotal
Fixed CostsTotal Variable CostsUnitsUtilitiesVariable Costs
    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

$

$

$

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN


DepreciationDirect LaborDirect MaterialsFixed CostsIndirect
LaborIndirect MaterialsMaintenanceRentSupervisionTotal CostsTotal
Fixed CostsTotal Variable CostsUnitsUtilitiesVariable Costs

FUN

DepreciationDirect LaborDirect MaterialsFixed CostsIndirect
LaborIndirect MaterialsMaintenanceRentSupervisionTotal CostsTotal
Fixed CostsTotal Variable CostsUnitsUtilitiesVariable Costs
    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN


DepreciationDirect LaborDirect MaterialsFixed CostsIndirect
LaborIndirect MaterialsMaintenanceRentSupervisionTotal CostsTotal
Fixed CostsTotal Variable CostsUnitsUtilitiesVariable Costs

FUN

DepreciationDirect LaborDirect MaterialsFixed CostsIndirect
LaborIndirect MaterialsMaintenanceRentSupervisionTotal CostsTotal
Fixed CostsTotal Variable CostsUnitsUtilitiesVariable Costs

$

$

$

FUN

LINK TO TEXT

LINK TO VIDEO

In September, 67,000 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.)

HILL COMPANY
Assembling Department
Flexible Budget Report
For the Month Ended August 31, 2014

Difference

Budget

Actual Costs

Favorable (F)
Unfavorable (U)
Neither Favorable
nor Unfavorable (N)


DepreciationDirect LaborDirect MaterialsFixed CostsIndirect
LaborIndirect MaterialsMaintenanceRentSupervisionTotal CostsTotal
Fixed CostsTotal Variable CostsUnitsUtilitiesVariable Costs


DepreciationDirect LaborDirect MaterialsFixed CostsIndirect
LaborIndirect MaterialsMaintenanceRentSupervisionTotal CostsTotal
Fixed CostsTotal Variable CostsUnitsUtilitiesVariable Costs
    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

$

$

$

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN


DepreciationDirect LaborDirect MaterialsFixed CostsIndirect
LaborIndirect MaterialsMaintenanceRentSupervisionTotal CostsTotal
Fixed CostsTotal Variable CostsUnitsUtilitiesVariable Costs

FUN

DepreciationDirect LaborDirect MaterialsFixed CostsIndirect
LaborIndirect MaterialsMaintenanceRentSupervisionTotal CostsTotal
Fixed CostsTotal Variable CostsUnitsUtilitiesVariable Costs
    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN

    Depreciation    Direct
Labor    Direct
Materials    Fixed
Costs    Indirect
Labor    Indirect
Materials    Maintenance    Rent    Supervision    Total
Costs    Total Fixed
Costs    Total Variable
Costs    Units    Utilities    Variable
Costs    

FUN


DepreciationDirect LaborDirect MaterialsFixed CostsIndirect
LaborIndirect MaterialsMaintenanceRentSupervisionTotal CostsTotal
Fixed CostsTotal Variable CostsUnitsUtilitiesVariable Costs

FUN

DepreciationDirect LaborDirect MaterialsFixed CostsIndirect
LaborIndirect MaterialsMaintenanceRentSupervisionTotal CostsTotal
Fixed CostsTotal Variable CostsUnitsUtilitiesVariable Costs

$

$

$

FUN

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