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Aleks [24]
4 years ago
7

When they made their master budget, Vann Enterprises had direct material per unit costs of $12.43, direct labor per unit costs o

f $8.46, and manufacturing overhead per unit costs of $14.29. They planned to sell 16,000 units in the first quarter. However, in the first week of the first quarter, the direct material per unit costs rose to $16.12, which increased the selling price of the finished product. Therefore, Vann Enterprises only sold 15,500 units. What would the difference in cost of goods sold be between the budgeted income statement and the actual income statement?
Business
1 answer:
77julia77 [94]4 years ago
6 0

Answer:

Difference: 20,170

<u>The actual total Cost of good sold </u>is 20,170 dollars higher than budgeted COGS

<u>At unit level,</u> is 3.69 higher.

Explanation:

<u></u>

<u>Budget COGS</u>

12.43 + 8.46 + 14.29 = 35.18

Budgeted sales units x COGS

16,000 x 35.18 = 562,880

<u>Actual COGS</u>

16.12 + 8.46 + 14.29 = 38.87

Actual sales x COGS per unit

15,000 x 38.87 = 583,050

Units difference: 38.87 - 35.18 = 3.69

Total Difference: 583,050 - 562,880 = 20,170

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