Shalom Company manufactures and sells Peace products. During the year, the company estimated for the production and sale of 15,000 units of Peace products. Each unit requires 1.50 kilos of direct material at a cost of P8 per pound. It takes 15 minutes to manufacture each unit of Peace product at a cost of P0.18 per minute. At the end of the current year, Shalom had produced and sold 16,000 Peace products for P50 per unit. The actual costs for direct materials and direct labor were P179,200, and P44,800, respectively. In your flexible budget performance report, identify the difference between budgeted and actual costs and indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. direct materials
Shalom Company manufactures and sells Peace products. During the year, the company estimated for the production and sale of 15,000 units of Peace products. Each unit requires 1.50 kilos of direct material at a cost of P8 per pound. It takes 15 minutes to manufacture each unit of Peace product at a cost of P0.18 per minute. At the end of the current year, Shalom had produced and sold 16,000 Peace products for P50 per unit. The actual costs for direct materials and direct labor were P179,200, and P44,800, respectively. In your flexible budget performance report, identify the difference between budgeted and actual costs and indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. direct materials
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Shalom Company manufactures and sells Peace products. During the year, the company
estimated for the production and sale of 15,000 units of Peace products. Each unit requires 1.50
kilos of direct material at a cost of P8 per pound. It takes 15 minutes to manufacture each unit of
Peace product at a cost of P0.18 per minute. At the end of the current year, Shalom had produced
and sold 16,000 Peace products for P50 per unit. The actual costs for direct materials and direct
labor were P179,200, and P44,800, respectively.
In your flexible budget performance report, identify the difference between budgeted and actual
costs and indicate as favorable or unfavorable.
Format should be: 8,000 F or 8,000 UF
No need to indicate if the amount is positive or negative.
direct materials
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