1. Acme Companys production budget for August is 18,400 units and includes the following component unit costs: direct materials, $8.00; direct labor, $10.50; variable overhead, $6.00. Budgeted fixed overhead is $41,000. Actual production in August was 20,076 units. Required: Prepare a flexible budget that would be used to compare against actual production costs for August. (Round "Cost per unit" to 2 decimal places.)

		Original budget	Flexed budget
	Cost formula	(18,400 units)	(20,076 units)
Direct Materials
Direct Labor
Variable Overhead
Fixed Overhead
Total budgeted cost

2. Acme Companys production budget for August is 18,900 units and includes the following component unit costs: direct materials, $7.20; direct labor, $11.40; variable overhead, $5.40. Budgeted fixed overhead is $46,000. Actual production in August was 21,840 units. Actual unit component costs incurred during August include direct materials, $9.60; direct labor, $10.80; variable overhead, $6.20. Actual fixed overhead was $48,900. Required: Prepare a performance report, including each cost component. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

	Original Budget	Flexed Budget	Actual Cost	Budget Variance
Cost Component	(18,900 units)	(21,840 units)	(21,840 units)
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total budgeted cost