Ch 11 Homework Assignment

1. Performance Report

Bowling Company provided the following information for last year.

Master BudgetActual Data

Budgeted production4,0003,800 units

Direct materials:3 pounds @ $0.60 per pound$6,800

Direct labor:0.5 hr. @ $16.00 per hour30,500

VOH:0.5 hr. @ $2.204,200

FOH:

Materials handling,$6,2006,300

Depreciation,$2,6002,600

Required:

Class:

Calculate the budgeted amounts for each cost category listed above for the 4,000 budgeted units.

Budgeted for 4,000 units

Direct materials

Direct labor

Variable overhead

Fixed overhead:

Materials handling.............................................

Depreciation......................................................

Total.....................................................................

2. Performance Report

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:

Variable costs of production:

Direct materials$6,800

Direct labor30,500

VOH4,200

FOH:

Materials handling6,300

Depreciation2,600

Required:

Homework:

Prepare a performance report using a budget based on the actual level of production.

Performance Report

ActualBudgetedVariance*

Units produced.....................

Direct materials.....................

Direct labor...........................

Variable overhead..................

Fixed overhead:

Materials handling............

Depreciation.....................

Total....................................

* Variances equal actual amounts minus budgeted amounts. If actual cost is less than

budgeted cost, the variance is F (favorable). If actual cost is more than budgeted cost, the

variance is U (unfavorable).

3. Total Variable Overhead Variance

Aretha Company showed the following information for the year:

Standard variable overhead rate (SVOR) per direct labor hour$3.70

Standard hours (SH) allowed per unit4

Actual production14,000

Actual variable overhead costs$206,816

Actual direct labor hours56,200

Required:

Class:

1. Calculate the actual variable overhead rate (AVOR).

Homework:

2. Calculate the applied variable overhead.