Reference no: EM133031195

Question - 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 labor0.5 hr. @ $16.00 per hour

VOH0.5 hr. @ $2.20FOH: 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 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".