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Braemar Saddlery: revised performance report- flexible budge

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Braemar Saddlery uses department budgets and performance reports in planning and controlling its manufacturing operations. The following annual performance report for the custom saddle production department was presented to the president of the company:
Budgeted Costs Actual Over
for 5,000 Units Costs (Under)
Incurred Budget

Per Unit Total
  Variable manufacturing costs:
        Direct materials $ 30.00   $ 150,000   $ 171,000   $ 21,000  
        Direct labor 48.00   240,000   261,500   21,500  
        Indirect labor 15.00   75,000   95,500   20,500  
        Indirect materials, supplies, etc. 9.00   45,000   48,400   3,400  

           Total variable manufacturing costs $ 102.00   $ 510,000   $ 576,400   $ 66,400  

  Fixed manufacturing costs:
        Lease rental $ 9.00   $ 45,000   $ 45,000   $ ­0­  
        Salaries of foremen 24.00   120,000   125,000   $ 5,000  
        Depreciation and other 15.00   75,000   78,600   3,600  

        Total fixed manufacturing costs $ 48.00   $ 240,000   $ 248,600   $ 8,600  

    Total manufacturing costs $ 150.00   $ 750,000   $ 825,000   $ 75,000  

Performance Report for Custom Saddle Production Dept.
For the Year Ended December 31, 20__
Budgeted Costs Actual Over
for 6,000 Units Costs (or Under)
Per Unit Total Incurred Budget
   Variable manufacturing costs:

Total variable manufacturing costs $   $   $   $  

  Fixed manufacturing costs:

 Total fixed manufacturing costs $   $   $   $   

  Total manufacturing costs $   $   $   $  

b. What is the amount of over- or underapplied manufacturing overhead for the year? (Note that a standard cost system is not used.) (Omit the "$" sign in your response.)

  Manufacturing overhead applied $  
  Underapplied manufacturing overhead $  

Learning Objective: 23-02 Discuss the benefits that a company may derive from a formal budgeting process.
Learning Objective: 23-05 Prepare the budgets and supporting schedules included in a master budget.
Learning Objective: 23-04 Describe the elements of a master budget.
Learning Objective: 23-06 Prepare a flexible budget and explain its uses.

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