1. The company expects to make 2000 units of this product for 2009. Prepare the master budget for total manufacturing costs.

2. The actual production for 2009 turns out to be 1800 units. Compute the flexible budget for total manufacturing costs. What is the associated volume variance for total manufacturing costs?

Lake Shore Co. has developed the following cost standards for one of its products: Direct materials: Direct labor: Variable manufacturing overhead Fixed manufacturing overhead $15.00 per unit $25.00 per unit $20.00 per unit $500,000