1. (TCO C) The following overhead data are for a department of a large company. Actual costs Static Incurred budget Activity level (in units) 360 340 Variable costs: Indirect materials $4,182 $4,148 Electricity $2,536 $2,414 Fixed costs: Administration $6,540 $6,500 Rent $6,310 $6,400 Required: Construct a flexible budget performance report that would be useful in assessing how well costs were controlled in this department. 3. (TCO E) Duif Company's absorption costing income statement for the last year of operations is presented below: Sales.........................................................$70,000 Less cost of goods sold: Beginning inventory.............................................. 0 Add cost of goods manufactured..................48,000 Goods available for sale...............................48,000 Less ending inventory....................................6,000 Cost of goods sold......................................42,000 Gross margin..............................................28,000 Less selling & admin. expenses....................25,000 Net operating income................................$ 3,000 Data on units produced and sold for the year are given below: Units in beginning inventory...................................0 Units produced..............................................8,000 Units sold......................................................7,000 Fixed factory overhead totaled $16,000 for the year. This overhead was applied to products at a rate of $2 per unit. Variable selling and administrative expenses were $3 per unit sold. Required: Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements. (Points: 30) 10. (TCO F) Monica Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The company manufactures tools to customer specifications. The following data pertain to Job 1501: Direct materials used: $4,200 Direct labor hours worked : 400 Direct labor rate per hour: $7.50 Machine hours used: 200 Predetermined overhead rate per machine hour :$15.00 What is the total manufacturing cost recorded on Job 1501? (Points: 5) $8,800 $10,200 $10,300 $11,100