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

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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.

Balboa Company budgeted production of 4 500 units with the following

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