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Performance Report Master Budget Actual Data Budgeted production: 4,200 Actual p

ID: 2471352 • Letter: P

Question

Performance Report Master Budget Actual Data Budgeted production: 4,200 Actual production: 4,100 units Materials: 2 leather strips @ $7.00 Materials cost: $58,700 Labor: 1.5 hr. @ $18.00 Labor cost: $112,900

Prepare a performance report using a budget based on expected production. In the variance type column, select "F" for favorable and "U" for unfavorable. If the variance is zero, enter ("0") in the variance amount column and "N" for neither in the variance type column. Performance Report Actual Budgeted Variance Variance Type (F or U or N) Units produced Direct materials cost $ $ $ Direct labor cost Total $ $ $

Explanation / Answer

Performance report

Actual

Budgeted

Variance

Variance Type

Units produced

4100 Units

4100 Units

A

B

A-B

Direct materials cost

$   58,700

$                                             57,400

$    1,300

U

(4100 Units*2 leather strips @ $7.00 )

Direct labor cost

$ 112,900

$                                           110,700

$    2,200

U

(4100 Units * 1.5 hr. @ $18.00 )

Total

$ 171,600

$                                           168,100

$    3,500

U

Performance report

Actual

Budgeted

Variance

Variance Type

Units produced

4100 Units

4100 Units

A

B

A-B

Direct materials cost

$   58,700

$                                             57,400

$    1,300

U

(4100 Units*2 leather strips @ $7.00 )

Direct labor cost

$ 112,900

$                                           110,700

$    2,200

U

(4100 Units * 1.5 hr. @ $18.00 )

Total

$ 171,600

$                                           168,100

$    3,500

U