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(Solution) - Dagmar Company budgeted the following amounts Variable costs of production Direct

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Dagmar Company budgeted the following amounts:
Variable costs of production:
Direct materials ........ 3 pounds @ 0.80 per pound
Direct labor ........... 0.5 hr. @ $12.00 per hour
Variable overhead ....... 0.5 hr. @ $1.50
Fixed overhead:
Materials handling ........ $6,200
Depreciation ......... $2,600
At the end of the year, Dagmar had the following actual costs for production of 2,900 units:
Direct materials ........ $ 6,900
Direct labor ........... 17,340
Variable overhead ....... 2,200
Fixed overhead:
Materials handling ....... 6,300
Depreciation .......... 2,600

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


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This question was answered on: Jul 11, 2017

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