Reference no: EM132626267

Question - Culver Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows.

CULVER COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017

Difference Manufacturing Costs Budget Actual Favorable Unfavorable

Variable costs Direct materials $51,240 $50,140 $1,100

Favorable Direct labor 59,780 56,580 3,200

Favorable Indirect materials 25,620 25,820 200

Unfavorable Indirect labor 21,960 21,560 400

Favorable Utilities 18,300 18,170 130

Favorable Maintenance 6,100 6,450 350

Unfavorable Total variable183,000

178,720 4,280

Favorable Fixed costs Rent 10,100 10,100 -0-

Supervision 18,000 18,000 -0-

Depreciation 6,200 6,200 -0-

Total fixed 34,300 34,300 -0-

Total costs $217,300 $213,020 $4,280

Favorable

The monthly budget amounts in the report were based on an expected production of 61,000 units per month or 732,000 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 59,000 units were produced.

Required - Display a budget report for August using flexible budget data.