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Question - The following budgeted and actual volume and cost data are for January of this year:
Budget Actual
Volume 20,000 18,000
Budgeted manufacturing costs:
Variable costs per unit:
Direct materials $40.00
Direct labor 12.00
Overhead 2.25
Total fixed overhead costs $150,000
Actual manufacturing costs:
Direct materials $1,320,000
Direct labor 396,000
Variable overhead 82,000
Fixed overhead 175,000
Required -
a. Prepare a static budget analysis of production costs for January of this year.
b. Prepare a flexible budget analysis of production costs for January of this year.
Using the weighted-average method, find the equivalent units of production with regard to direct labor
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