Chapter 10: Using Excel to Make Decisions at Current Designs Part 1
Data
Kayaks budgeted for production in 2017 4,000
Manufacturing overhead budget for 2017
Variable costs
Indirect materials 40,000$
Manufacturing supplies 53,800
Maintenance and utilities 88,000
Budgeted unit costs
Polyethylene powder 1.50$ per pound
Finishing kits 170.00$ each
Budgeted labor usage
Type I labor 2 hours
Type II labor 3 hours
Kayaks produced in the first quarter 1,050
Costs incurred in first quarter
Polyethylene powder 87,000$
Finishing kits 178,840
Type I labor 31,500
Required
Follow the step-by-step directions to prepare flexible budget reports for Current Designs.
(a)
Amount
Budgeted
Kayak to be produced 4,000
Costs:
Variable costs
Polyethylene powder 324,000$
Finishing kits 680,000
Fixed costs
Supervision 90,000
Insurance 14,400
(b)
Kayaks to be produced 900 1,000 1,050
Costs:
Variable costs
Indirect materials 9,000 10,000 10,500
Manufacturing supplies 12,105 13,450 14,123
Current Designs
Rotomolded Line
Manufacturing Flexible Budget Report
For the Quarter Ended December 31, 2017
Current Designs
Rotomolded Line
Manufacturing Budget
For the Year Ended December 31, 2017
Number of Kayaks
(c)
Flexible Budget Actual Costs
Number of Kayaks 1,050 1,050 Difference F or U
Costs:
Variable costs
Indirect materials 10,500 10,500 –
Manufacturing supplies 14,123 14,150 28 U
Fixed costs
Supervision 22,500 20,000 2,500 F
Insurance 3,600 3,600 –
Current Designs
Rotomolded Line
Manufacturing Responsibility Report
For the Quarter Ended December 31, 2017
Chapter 10: Using Excel to Make Decisions at Current Designs Part 2
Data
Kayaks budgeted for production in 2017 4,000
Manufacturing overhead budget for 2017
Variable costs
Indirect materials 40,000$
Manufacturing supplies 53,800
Maintenance and utilities 88,000
Total variable costs 181,800
Fixed costs
Supervision 90,000
Insurance 14,400
Budgeted unit costs
Polyethylene powder 1.50$ per pound
Finishing kits 170.00$ each
Polyethylene powder required per kayak 54 pounds
Finishing kits required per kayak 1 kit
Kayaks produced in the first quarter 1,050
Costs incurred in first quarter
Polyethylene powder 87,000$
Finishing kits 178,840
Type I labor 31,500
Type II labor 39,060
Required
Follow the step-by-step directions to prepare flexible budget reports for Current Designs.
(b)
Current Designs
Rotomolded Line
Manufacturing Flexible Budget Report
Kayaks to be produced 900 1,000 1,070
Costs:
Variable costs
Polyethylene powder 72,900$ 81,000$ 86,670$
Finishing kits 153,000 170,000 181,900
(c)
Flexible Budget Actual Costs
Number of Kayaks 1,070 1,070 Difference F or U
Costs:
Variable costs
Polyethylene powder 86,670$ 87,000$ 330 U
Finishing kits 181,900 178,840 3,060 F
Type I labor 32,100 31,500 600 F
Fixed costs
Supervision 22,500 20,000 2,500 F
Insurance 3,600 3,600 –
For the Quarter Ended December 31, 2017
Number of Kayaks