Purchase Solution

Flexible budgeting for Rockey Mountain Manufacturing

Not what you're looking for?

Rocky Mountain Manufacturing produces a single product. The original budget for November was based on expected production of 16,700 units; actual production for November was 14,362 units. The original budget and actual costs incurred for the manufacturing department follow:

Original Budget Actual Costs
Direct materials \$ 250,500 \$ 224,063
Direct labor 200,400 176,476
Variable overhead 116,900 96,075
Fixed overhead 85,400 86,711

Total \$ 653,200 \$ 583,325

Required:
Prepare an appropriate performance report for the manufacturing department. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations and round final answers to nearest whole dollar amount. Omit the "\$" sign in your response.)

ItemOriginal Budget Flexed Budget
(16,700 units) (14,362 units) Actual Cost Variance
Direct Materials \$ \$ \$ \$
Direct Labor
Variable Overhead
Fixed Overhead
Total \$ \$ \$ \$

Please see attached screenshot.

Solution Summary

The expert examines flexible budgeting for Rockey Mountain Manufacturing.

Solution provided by:
Education
• MBA, Merage School of Business, Univ of Cal, Irvine
• BA, Univ of Cal, Irvine
Recent Feedback
• "Thank you so much for your help, it was very helpful to see how you did it in excel. Thanks again!"
• "Awesome review. Thank you!!!!!"
• "Wow - Amazing - Thanks"
• "Thanks"
• "Thanks for your help. Your solution helps me understand the problem and its solution."

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.