Question
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the...
Rammazzotti, Inc., is looking for feedback on company
performance. The company compares the budget for the year with the
actual costs. Data have been collected below:
Rammazzotti Inc., had the following budgeted data:
|
Unit sales for 2018 |
26,000 |
|
Unit production for 2018 |
26,000 |
|
|
|
|
Budgeted fixed overhead for 2018: |
|
|
Supervision |
$ 800 |
|
Depreciation |
2,000 |
|
Rent |
100 |
|
|
|
|
Budgeted variable costs per unit: |
|
|
Direct materials |
$0.15 |
|
Direct labor |
0.20 |
|
Supplies |
0.02 |
|
Indirect labor |
0.05 |
|
Power |
0.02 |
The following actually occurred:
|
Actual unit sales for 2018 |
24,000 |
|
Actual unit production for 2018 |
28,000 |
|
|
|
|
Actual fixed overhead for 2018: |
|
|
Supervision |
$ 850 |
|
Depreciation |
2,000 |
|
Rent |
100 |
|
|
|
|
Actual variable costs: |
|
|
Direct materials |
$3,500 |
|
Direct labor |
4,900 |
|
Supplies |
530 |
|
Indirect labor |
1,250 |
|
Power |
470 |
The static budget variance for total variable costs is
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