Figure 8-8
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 2016 26,000
Unit production for 2016 26,000
Budgeted fixed overhead for 2016:
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 2016 24,000
Actual unit production for 2016 28,000
Actual fixed overhead for 2016:
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
-Refer to Figure 8-8. The total actual costs for 2016 were
A) $13,550.
B) $10,650.
C) $13,600.
D) $13,510.

Question

Quizplus · Accepted Answer

To find the total actual costs for 2016, we need to add up the actual fixed overhead and actual variable costs.

Actual fixed overhead:
Supervision: $850
Depreciation: $2,000
Rent: $100
Total actual fixed overhead: $2,950

Actual variable costs:
Direct materials: $3,500
Direct labor: $4,900
Supplies: $530
Indirect labor: $1,250
Power: $470
Total actual variable costs: $10,650

Total actual costs for 2016:
Actual fixed overhead + Actual variable costs = $2,950 + $10,650 = $13,600

Therefore, the correct answer is choice C.

Figure 8-8 Rammazzotti, Inc., Is Looking for Feedback on Company Performance. the Performance