Performance Report Based on Budgeted and Actual Levels of Production Bowling Com
ID: 2536009 • Letter: P
Question
Performance Report Based on Budgeted and Actual Levels of Production
Bowling Company budgeted the following amounts:
At the end of the year, Bowling had the following actual costs for production of 3,800 units:
Required:
1. Calculate the budgeted amounts for each cost category listed above for the 4,000 budgeted units.
$
2. Prepare a performance report using a budget based on expected production of 4,000 units. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number and if there is no entries enter "0" then select for "Not applicable".
3. Prepare a performance report using a budget based on the actual level of production of 3,800 units. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number and if there is no entries enter "0" then select for "Not applicable".
Variable costs of production: Direct materials 3 pounds @ $0.60 per pound Direct labor 0.5 hr. @ $16.00 per hour VOH 0.5 hr. @ $2.20 FOH: Materials handling $6,200 Depreciation $2,600Explanation / Answer
1) Budgeted amounts for each cost category for 4,000 budgeted units.
2)
Bowling Company
Performance Report
3)
Bowling Company
Performance Report
Particulars Workings Budgeted Amount Productions 4000 units Variable Cost Direct Materials 4000*3*0.60 7200 Direct labour 4000*0.5*16 32000 VOH 4000*0.5*2.2 4400 FOH Materials handling 6200 Depreciation 2600