Performance Report Bowling Company budgeted the following amounts: Variable cost
ID: 2476855 • Letter: P
Question
Performance Report
Bowling Company budgeted the following amounts:
Variable costs of production:
Direct materials
6 pounds @ $0.20 per pound
Direct labor
0.6 hr. @ $15.50 per hour
VOH
0.4 hr. @ $2.60
FOH:
Materials handling
$6,300
Depreciation
$2,600
At the end of the year, Bowling had the following actual costs for production of 3,800 units:
Direct materials
$6,800
Direct labor
30,500
Variable overhead
4,200
Fixed overhead:
Materials handling
6,300
Depreciation
2,600
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.
Bowling Company
Performance Report
Actual
Budgeted
Variance
Variance Type (F or U or N)
Units produced
Direct materials
$
$
$
Direct labor
Variable overhead
Fixed overhead:
Materials handling
Depreciation
Total
$
$
$
Variable costs of production:
Direct materials
6 pounds @ $0.20 per pound
Direct labor
0.6 hr. @ $15.50 per hour
VOH
0.4 hr. @ $2.60
FOH:
Materials handling
$6,300
Depreciation
$2,600
Explanation / Answer
Bowling Company
Performance Report
Actual Budgeted Variance Variance type Units produced 3,800 3,800 Direct materials $ 6,800 $ 4,560 $ 2,240 U Direct labor $ 30,500 $ 35,340 $ 4,840 F Variable overhead $ 4,200 $ 3,952 $ 248 U Total variable costs $ 41,500 $ 43,852 $ 2,352 F Fixed overheads Materials handling $ 6,300 $ 6,300 N Depreciation $ 2,600 $ 2,600 N Total $ 50,400 $ 52,752 $ 2,352 F