Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 22

A Flexible budgeting
At the beginning of the period, the Assembly Department budgeted direct labor of $112,000 and property tax of $12,000 for 7,000 hours of production. The department actually completed 7,500 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
B Flexible budgeting
At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depreciation of $2,300 for 640 hours of production. The department actually completed 600 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.