Chapter 9, Problem 48BEB

Performance Report Based on Budgeted and Actual Levels of Production

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

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

Required:

1. 1. Calculate the budgeted amounts for each cost category listed above for the 4,500 budgeted units.
2. 2. Prepare a performance report using a budget based on expected (budgeted) production of 4,500 units.
3. 3. Prepare a performance report using a budget based on the actual level of production of 4,700 units.