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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The master budget of Knope Inc. shows that the planned activity level for next year is expected to be 25,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor................................................. $720,000 Machine supplies.............................................180,000 Indirect materials.............................................210,000 Depreciation on factory building..................150,000 Total manufacturing overhead.................$1,260,000 A flexible budget for a level of activity of 30,000 machine hours would show total manufacturing overhead costs of Group of answer choices $1,260,000 $1,512,000 $1,362,000 $1,482,000
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