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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. Calculate the budgeted amounts for each cost category listed above for the 4,000 budgeted units.
$fill in the blank 04a5390a9febfc0_1

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".

Bowling Company
Performance Report
Actual Budgeted Variance
Units produced fill in the blank b05439fbb020fd8_1 fill in the blank b05439fbb020fd8_2 fill in the blank b05439fbb020fd8_3 Unfavorable
Direct materials $fill in the blank b05439fbb020fd8_5 $fill in the blank b05439fbb020fd8_6 $fill in the blank b05439fbb020fd8_7 Favorable
Direct labor fill in the blank b05439fbb020fd8_9 fill in the blank b05439fbb020fd8_10 fill in the blank b05439fbb020fd8_11 Favorable
Variable overhead fill in the blank b05439fbb020fd8_13 fill in the blank b05439fbb020fd8_14 fill in the blank b05439fbb020fd8_15 Favorable
Fixed overhead:
Materials handling fill in the blank b05439fbb020fd8_17 fill in the blank b05439fbb020fd8_18 fill in the blank b05439fbb020fd8_19 Unfavorable
Depreciation fill in the blank b05439fbb020fd8_21 fill in the blank b05439fbb020fd8_22 fill in the blank b05439fbb020fd8_23 Not applicable
Total $fill in the blank b05439fbb020fd8_25 $fill in the blank b05439fbb020fd8_26 $fill in the blank b05439fbb020fd8_27 Favorable

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 fill in the blank 35bc4cfe1ff6f94_1 fill in the blank 35bc4cfe1ff6f94_2 fill in the blank 35bc4cfe1ff6f94_3 Not applicable
Direct materials $fill in the blank 35bc4cfe1ff6f94_5 $fill in the blank 35bc4cfe1ff6f94_6 $fill in the blank 35bc4cfe1ff6f94_7 Favorable
Direct labor fill in the blank 35bc4cfe1ff6f94_9 fill in the blank 35bc4cfe1ff6f94_10 fill in the blank 35bc4cfe1ff6f94_11 Unfavorable
Variable overhead fill in the blank 35bc4cfe1ff6f94_13 fill in the blank 35bc4cfe1ff6f94_14 fill in the blank 35bc4cfe1ff6f94_15 Unfavorable
Fixed overhead:
Materials handling fill in the blank 35bc4cfe1ff6f94_17 fill in the blank 35bc4cfe1ff6f94_18 fill in the blank 35bc4cfe1ff6f94_19 Unfavorable
Depreciation fill in the blank 35bc4cfe1ff6f94_21 fill in the blank 35bc4cfe1ff6f94_22 fill in the blank 35bc4cfe1ff6f94_23 Not applicable
Total $fill in the blank 35bc4cfe1ff6f94_25 $fill in the blank 35bc4cfe1ff6f94_26 $fill in the blank 35bc4cfe1ff6f94_27 Unfavorable

Solutions

Expert Solution

1.

Direct material (4,000*3*$0.60) $7,200
Direct labor (4,000*0.5*$16) 32,000
Variable overhead (4,000*0.5*$2.20) 4,400
Fixed overhead:
Materials handling 6,200
Depreciation 2,600
Total $52,400

2.

Bowling Company Performance Report
Actual Budgeted Variance
Units produced 3,800 4,000 200 Unfavorable
Direct material $6,800 $7,200 $400 Favorable
Direct labor 30,500 32,000 1,500 Favorable
Variable overhead 4,200 4,400 200 Favorable
Fixed overhead:
Materials handling 6,300 6,200 100 Unfavorable
Depreciation 2,600 2,600 0 Not applicable
Total $50,400 $52,400 $2,000 Favorable

3.

Bowling Company Performance Report
Actual Budgeted Variance
Units produced 3,800 3,800 0 Not applicable
Direct material $6,800 $6,840 (3,800*3*$0.60) $40 Favorable
Direct labor 30,500 30,400 (3,800*0.5*$16) 100 Unfavorable
Variable overhead 4,200 4,180 (3,800*0.5*$2.20) 20 Unfavorable
Fixed overhead:
Materials handling 6,300 6,200 100 Unavorable
Depreciation 2,600 2,600 0 Not applicable
Total $50,400 $50,220 $180 Unfavorable

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