Performance Report Bowling Company budgeted the following amounts: Variable costs of production: Direct materials 8 pounds @ $0.70 per pound Direct labor 0.4 hr. @ $16.50 per hour VOH 0.3 hr. @ $2.20 FOH: Materials handling $6,250 Depreciation $2,560 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 Variable overhead 4,200 Fixed overhead: Materials handling 6,300 Depreciation 2,560
Performance Report Bowling Company budgeted the following amounts: Variable costs of production: Direct materials 8 pounds @ $0.70 per pound Direct labor 0.4 hr. @ $16.50 per hour VOH 0.3 hr. @ $2.20 FOH: Materials handling $6,250 Depreciation $2,560 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 Variable overhead 4,200 Fixed overhead: Materials handling 6,300 Depreciation 2,560
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 34BEA: Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Performance Report
Bowling Company budgeted the following amounts:
Variable costs of production:
Direct materials
8 pounds @ $0.70 per pound
Direct labor
0.4 hr. @ $16.50 per hour
VOH
0.3 hr. @ $2.20
FOH:
Materials handling
$6,250
Depreciation
$2,560
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
Variable overhead
4,200
Fixed overhead:
Materials handling
6,300
Depreciation
2,560
Transcribed Image Text:Performance Report
Prepare a performance report using a budget based on the actual level of production. In the variance typ
and "U" for unfavorable. If the variance is zero, enter ("0") in the variance amount column and "N" for n
column.
Bowling Company
Performance Report
Actual
Budgeted Variance Variance Type (F or U or N)
Units produced
Direct materials
Direct labor
Variable overhead
Fixed overhead:
Materials handling
Depreciation
Total
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