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Practice Example Robinson Company expects to produce 7,500 units of the product ABC for...

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Question

Accounting

Practice Example
Robinson Company expects to produce 7,500 units of the product ABC for the month of August 2022. Budgeted variable manufacturing costs per unit are direct materials $9, direct labour $15, and overhead $25.
Monthly budgeted fixed manufacturing overhead costs are $15,000 for depreciation and $7,500 for supervision. In the current month, Robinson produced 8,250 units and incurred the following costs: direct materials $50,850, direct labour $111,300, variable overhead $180,750, depreciation $15,000, and supervision $7,500.
Instructions
Prepare a static budget report. (Hint: The Budget column is based on estimated production of 7,500 units while the Actual column is the actual costs incurred during the period. Determine if there is a Favourable or Unfavourable variance.) Important Note: 1-Please Solve the qustion within a table.
2- Explain the solution and write the rules for each step.
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