Reference no: EM132622992
Performance Production Cost Report (mowen)
The management of COOL U printed t-shirts wants to know the cost of producing 1,000 shirts, 1,200 shirts and 1,400 shirts. The following information were given:
Budget for the quarter:
Levels of output: 1,000, 1,200 and 1,400
Materials:
1 plain shirt @ P3.00
5 ounces of ink @ 0.20 per oz
Labor:
0.12 hr. @ P10
Variable overhead:
Maintenance: 0.12 hr @ P3.75
Power: 0.12 hr @ P1.25
Fixed overhead:
Grounds keeping: P1,200 per quarter
Depreciation: P600 per quarter
The actual data for Quarter 1 are as follows:
Production: 1,200 t-shirts
Material cost: P4,830
Labor costs: P1,500
Maintenance cost: P535
Power cost: P170
Grounds keeping: P 1,050
Depreciation: P600
REQUIREMENTS:
Problem 1. Prepare budget for the three levels of output.
Problem 2. Prepare performance report using the budgeted costs for the actual level of activity.