In: Accounting
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 |
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 |