Patrick Co. manufactures a single product. The original budget for April based o
ID: 2756405 • Letter: P
Question
Patrick Co. manufactures a single product. The original budget for April based on expected production of 12,000 units; actual production for April was 10,600 units. The original budget and actual costs for the manufacturing department are shown below: Original Budget Actual Costs Direct materials $ 96,000 $ 90,500 Direct Labor 50,400 48,400 Variable Overhead 42,000 38,700 Fixed Overhead 84,000 82,000 Total $272,400 $259,600 Prepare an appropriate performance report for the manufacturing department.
Explanation / Answer
Effficiency has been down and actual performance in not at par with budgeted
Per head Costs Budgeted Actual Budgeted Actual % Increase Production Units 12000 10600 Direct Materials 96000 90500 8 8.537736 7% Direct Labour 50400 48400 4.2 4.566038 9% Variable Overhead 42000 38700 3.5 3.650943 4% Fixed Overhead 84000 82000 7 7.735849 11% Total 272400 259600 22.7 24.49057 8%