Concept explainers
Wade Company estimates that it will produce 6,000 units of product 10A during the current month. Budgeted variable
In the current month, Wade actually produced 6,500 units and incurred the following costs: direct materials $38,850. direct labor $76,440. variable overhead $116,640, depreciation $8,000, and supervision $4,000.
Prepare a static budget report. Hint: The Budget column is based on estimated production while the Actual column is the actual cost incurred during the period. (Note: You do not need to prepare the heading.) Were costs controlled? Discuss limitations of the budget.
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