Braemar Saddlery: revised performance report- flexible budge
Not what you're looking for?
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
BRAEMAR SADDLERY
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.
Purchase this Solution
Solution Summary
The solution is presented in excel report format.
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Motivation
This tests some key elements of major motivation theories.