Question
Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts: Variable costs of production:Direct materials3 pounds @ $0.60 per
Performance Report Based on Budgeted and Actual Levels of Production
Bowling Company budgeted the following amounts:
Variable costs of production:Direct materials3 pounds @ $0.60 per pound
Direct labor0.5 hr. @ $16.00 per hour
VOH0.5 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:
2. Can you please help me identify what the actual versus budgeted units would be if comparing to 4000 units and what, if any, is the variance. I am not understanding. 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".
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