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Performance Report Bowling Company budgeted the following amounts: At the end of

ID: 2476843 • Letter: P

Question

Performance Report

Bowling Company budgeted the following amounts:

At the end of the year, Bowling had the following actual costs for production of 3,800 units:

2,550

Performance Report

Bowling Company budgeted the following amounts:

At the end of the year, Bowling had the following actual costs for production of 3,800 units:

X

Performance Report

Prepare a performance report using a budget based on the actual level of 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.

Variable costs of production: Direct materials 2 pounds @ $0.70 per pound Direct labor 0.3 hr. @ $15.00 per hour VOH 0.5 hr. @ $2.50 FOH: Materials handling $6,310 Depreciation $2,550

Explanation / Answer

Bowling Company Performance Report Actual Budgeted Variance Variance Type (F or U or N) Units produced 3,800 3,800 0 N Direct materials $6,800.00 $5,320.00 -$1,480.00 U Direct labor $30,500.00 $17,100.00 -$13,400.00 U Variable overhead $4,200.00 $4,750.00 $550.00 F Fixed overhead: Materials handling $6,300.00 $6,310.00 $10.00 F Depreciation $2,550.00 $2,550.00 $0.00 N Total $50,350.00 $36,030.00 -$14,320.00 U