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Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts:...
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Performance Report Based on Budgeted and Actual Levels of Production
Bowling Company budgeted the following amounts:
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 $2,600 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 VOH 4,200 FOH: Materials handling 6,300 Depreciation $2,600 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 the 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 are no entries enter "0" then select for "Not applicable".
Bowling Company Performance Report Actual Budgeted Variance Units produced Direct materials $ $ $ Direct labor Variable overhead Fixed overhead: Materials handling Depreciation Total $ $ $ 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".
Bowling Company Performance Report Actual Budgeted Variance Units produced Direct materials $ $ $ Direct labor Variable overhead Fixed overhead: Materials handling Depreciation Total $ $ $
Solutions
Expert Solution
| Ans 1. | ||
| Bowling Company | ||
| Budget for 4000 units | Per units | Total Amt $ |
| Units of Production | 4000 | |
| Variable cost of Production | ||
| Direct Materials( 3 lb/unit@$0.6/lb) | $ 1.80 | $ 7,200.00 |
| Direct Labor (0.5Hr/Unit , @$16/Hr) | 8.00 | $ 32,000.00 |
| VOH (0.5Hr/Unit @$2.2/Hr) | $ 1.10 | $ 4,400.00 |
| Tota Variable costs | $ 43,600.00 | |
| FOH | ||
| Material Handling | $ 6,200.00 | |
| Depreciation | $ 2,600.00 | |
| Total FOH | $ 8,800.00 | |
| Total Cost of Production | $ 52,400.00 |
| Ans 2. | |||
| Performance Report; | Actual | Budget | Variance |
| Units Produced | 3,800 | 4,000 | 200 |
| Direct Materials | $ 6,800 | $ 7,200.00 | $ (400.00) |
| Direct Labor | $ 30,500 | $ 32,000.00 | $ (1,500.00) |
| Variable Overhead: | $ 4,200 | $ 4,400.00 | $ (200.00) |
| Fixed Overhead | |||
| Material Handling | $ 6,300 | $ 6,200.00 | $ 100.00 |
| Depreciation | $ 2,600 | $ 2,600.00 | 0 |
| Total | $ 50,400 | $ 52,400 | $ (2,000.00) |
| Ans 3. | ||
| Budget for 3800 units | Per units | Total Amt $ |
| Units of Production | 3800 | |
| Variable cost of Production | ||
| Direct Materials( 3 lb/unit@$0.6/lb) | $ 1.80 | $ 6,840.00 |
| Direct Labor (0.5Hr/Unit , @$16/Hr) | 8.00 | $ 30,400.00 |
| VOH (0.5Hr/Unit @$2.2/Hr) | $ 1.10 | $ 4,180.00 |
| Tota Variable costs | $ 41,420.00 | |
| FOH | ||
| Material Handling | $ 6,200.00 | |
| Depreciation | $ 2,600.00 | |
| Total FOH | $ 8,800.00 | |
| Total Cost of Production | $ 50,220.00 |
| Performance Report; | Actual | Budget | Variance |
| Units Produced | 3,800 | 3,800 | - |
| Direct Materials | $ 6,800 | $ 6,840.00 | $ (40.00) |
| Direct Labor | $ 30,500 | $ 30,400.00 | $ 100.00 |
| Variable Overhead: | $ 4,200 | $ 4,180.00 | $ 20.00 |
| Fixed Overhead | |||
| Material Handling | $ 6,300 | $ 6,200.00 | $ 100.00 |
| Depreciation | $ 2,600 | $ 2,600.00 | 0 |
| Total | $ 50,400 | $ 50,220 | $ 180.00 |
jeff jeffy answered 2 years agoRelated Solutions
Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts:...
Performance Report Based on Budgeted and Actual Levels of
Production
Bowling Company budgeted the following amounts:
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
$2,600
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
VOH
4,200
FOH:
Materials handling
6,300
Depreciation
$2,600
Required:
1....
Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts:...
Performance Report Based on Budgeted and Actual Levels of
Production
Bowling Company budgeted the following amounts:
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
$2,600
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
VOH
4,200
FOH:
Materials handling
6,300
Depreciation
$2,600
Required:
1....
Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts:...
Performance Report Based on Budgeted and Actual Levels of
Production
Bowling Company budgeted the following amounts:
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
$2,600
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
VOH
4,200
FOH:
Materials handling
6,300
Depreciation
$2,600
Required:
1....
Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts:...
Performance Report Based on Budgeted and Actual Levels of
Production
Bowling Company budgeted the following amounts:
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
$2,600
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
VOH
4,200
FOH:
Materials handling
6,300
Depreciation
$2,600
Required:
1....
Flexible Budget with Different Levels of Production Bowling Company budgeted the following amounts: Variable costs of...
Flexible Budget with Different Levels of Production
Bowling Company budgeted the following amounts:
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
$2,600
Required:
Prepare a flexible budget for 2,500 units, 3,000 units, and
3,500 units.
Bowling Company
Flexible Budget
2,500
units
3,000
units
3,500
units
Direct materials
$
$
$
Direct labor
Variable overhead
Fixed overhead:
Materials handling...
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(conversion cost) R0.90
Chandelier Limited uses the weighted average method in preparing
its production reports. Chandelier Limited's total production cost
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12 Actual ounces purchased and used in production 12,731 Actual
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Flexible Budget for Various Levels of Production Budgeted amounts for the year: Materials 2 leather strips...
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Materials
2 leather strips @ $7.00
Labor
1.5 hr. @ $18.00
VOH
1.5 hr. @ $1.20
FOH
$6,800
Required:
1. Prepare a flexible budget for 3,500, 4,000,
and 4,500 units.
Flexible Budget
Variable Cost
per Unit
3,500 units
4,000 units
4,500 units
Direct materials
$
$
$
$
Direct labor
Variable overhead
Fixed overhead
Total
$
$
$
2. CONCEPTUAL CONNECTION Calculate the unit
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Actual ounces purchased and used in
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Labor:
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Standard hours allowed per completed
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