2. Point, Inc. produces men\'s shirts. The following budgeted and actual amounts

ID: 2516419 • Letter: 2

Question

2. Point, Inc. produces men's shirts. The following budgeted and actual amounts are for 2016: Cost Direct materials Direct labor Fixed overhead Budgeted Amounts at 2,500 units Actual Amounts at 2.900 units $55,000 $80,000 $30,000 $65,000 $83,000 $34,500 Prepare a responsibility report for Point, Inc. for the year. POINT, INC. Manufacturing Performance Responsibility Report For the Year Ended December 31, 2016 Budget (2,900 units) Actual Differences Direct Materials Direct Labor Fixed Overhead Total costs $83,000 34,5

Explanation / Answer

Prepare responsibility report:

P Inc.

Manufacturing performance responsibility report

For the month ended December 31, 2016

Details

Budget (2900 units)

Actual

Difference

Direct materials

$ 63,800

65000

$ 1,200

direct labor

$ 92,800

$ 83,000

$ -9,800

Fixed overhead

$ 34,800

$ 34,500

$ -300

Total costs

$ 191,400

$ 182,500

$ -8,900