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  • Actual Costs Static Incurre D Budge T

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    Shiba Inu
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    The document provides overhead data for a department including actual costs incurred and static budget amounts. It asks for a report to assess how well costs were controlled. The report prepared compares the actual costs incurred to the costs that would be expected based on the level of activity, calculating variances for each cost category and in total. It finds that total costs were under budget by $48, with under budgets in indirect materials and rent but over budgets in administration and power.

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    2009-03-27_073245_Jack

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    The document provides overhead data for a department including actual costs incurred and static budget amounts. It asks for a report to assess how well costs were controlled. The report prepared compares the actual costs incurred to the costs that would be expected based on the level of activity, calculating variances for each cost category and in total. It finds that total costs were under budget by $48, with under budgets in indirect materials and rent but over budgets in administration and power.

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    © All Rights Reserved
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    Download as doc, pdf, or txt
    7 views1 page

    Actual Costs Static Incurre D Budge T

    Uploaded by

    Shiba Inu
    The document provides overhead data for a department including actual costs incurred and static budget amounts. It asks for a report to assess how well costs were controlled. The report prepared compares the actual costs incurred to the costs that would be expected based on the level of activity, calculating variances for each cost category and in total. It finds that total costs were under budget by $48, with under budgets in indirect materials and rent but over budgets in administration and power.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    of 1

    The following overhead data are for a department in a large company.

    Actual
    costs Static
    incurre budge
    d t
    Activity level (in units).............. 510 420

    Variable costs:
    Indirect materials
    ............................................ $9,620 $7,854
    Power
    ............................................ $1,005 $840
    Fixed costs:
    Administration
    ............................................ $7,060 $7,100
    Rent
    ............................................ $4,220 $4,200

    Required:
    Prepare a report that would be useful in assessing how well costs were controlled
    in this department.

    Cost Formula per Unit


    Actual Costs Budget Based Variance
    of Activity Incurred on Level of Activity
    Variable Costs:
    Indirect Materials $18.70 $9,620 $9,537 ($83) U
    Power $2.00 $1,005 $1,020 $15 F
    Total Variable Cost $20.70 $10,625 $10,557 ($68) U
    Fixed Costs:
    Administration $7,060 $7,100 $40 F
    Rent $4,220 $4,200 ($20) U
    Total Fixed Cost $11,280 $11,300 $20 F

    Total Cost $21,905 $21,857 ($48) U

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