1. DownLoad Answer

    ACC 206 WEEK 4 ASSIGNMENT 2

    ACC 206 WEEK 4 Centron, Inc., has the following budgeted production costs:
    Direct materials 	$0.40 per unit 
    Direct labor 	1.80 per unit 
    Variable factory overhead 	2.20 per unit 
    Fixed factory overhead 
    Supervision 	$24,000 
    Maintenance 	18,000
    Other 	12,000
    
    The company normally manufactures between 20,000 and 25,000 units each quarter. Should output exceed 25,000 units, maintenance and other fixed costs are expected to increase by $6,000 and $4,500, respectively.
    During the recent quarter ended March 31, Centron produced 25,500 units and incurred the following costs:
    
    Direct Materials		$10,710 	
    Direct Labor		47,175	
    Variable factory overhead	51,940	
    Fixed factory overhead			
         Supervision		24,500	
         Maintenance		23,700	
         Other		16,800	
    Total production costs		$174,825 	
    
     
    
    
    
    
    
    
    Instructions:
    a.	Prepare a flexible budget for 20,000, 22,500, and 25,000 units of activity. 
    Centron, Inc.
    Flexible Budget
    Was Centron's experience in the quarter cited better or worse than anticipated? Prepare an 
    b.	appropriate performance report and explain your answer. 
    c.	measurement of performance. 
    Explain the benefit of using flexible budgets (as opposed to static budgets) in the 
    

Answer Detail

  1. ACC 206 WEEK 4 ASSIGNMENT 2ACC 206 WEEK 4 ASSIGNMENT 2ACC 206 WEEK 4 ASSIGNMENT 2ACC 206 WEEK 4 ASSIGNMENT 2ACC 206 WEEK 4 ASSIGNMENT 2ACC 206 WEEK 4 ASSIGNMENT 2
    To see full answer buy this answer.
    Answer Attachments

    1 attachments —

    • img
      2107596.docx

Invite Tutor