Balboa Company budgeted production of 4,500 units with the following amounts:

Variable costs of production:

Direct materials..............................3 pounds @ $1.30 per pound

Direct labor...................................0.5 hr. @ $18.00 per hour

VOH..........................................0.5 hr. @ $3.40

FOH:

Materials handling...........................$6,200

Depreciation...................................$2,600

At the end of the year, Balboa had the following actual costs for production of 4,700 units:

Direct materials..............................$18,320

Direct labor....................................42,400

VOH.............................................7,900

FOH:

Materials handling..............................8,800

Depreciation.....................................4,350

Required:

1. Calculate the budgeted amounts for each cost category listed above for the 4,500 budgeted units.

2. Prepare a performance report using a budget based on expected (budgeted) production of 4,500 units.

3. Prepare a performance report using a budget based on the actual level of production of 4,700 units.