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

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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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 PO.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.
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