Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Accounting Posted 03 Aug 2017 My Price 5.00

Keystone, LLC,

Performance Report for a Cost Center

e4A. Keystone, LLC, owns a peach processing plant. Last month, the plant generated the following information: peaches processed, 60,000 pounds; direct materials, $6,200; direct labor, $12,500; variable overhead, $17,600; and fixed overhead, $15,000. There were no beginning or ending inventories. Average daily pounds processed (25 business days) were 2,400. Average rate of processing was 300 pounds per hour.

At the beginning of the month, Keystone had budgeted costs of peaches, $5,000; direct labor, $10,000; variable overhead, $15,000; and fixed overhead, $14,000. The monthly master budget was based on producing 50,000 pounds of peaches each month. This means that the plant had been projected to process 2,000 pounds daily at the rate of 250 pounds per hour.

Prepare a performance report for the month for the peach processing plant. Include a flexible budget and the computation of variances in your report. Indicate whether the variances are favorable (F) or unfavorable (U) to the performance of the plant.

Answers

Maurice Tutor
(5)
Status NEW Posted 03 Aug 2017 11:08 PM My Price 5.00

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