( 8.27) In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 units of the deluxe model during the coming year. The standard model requires 0.05 of direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each of the four overhead items:

Maintenance $34,500 + $1.25 DLH

Power $0.50 DLH

Indirect labor $68,400 + 2.30 DLH

Rent $31,500

(8.28) At the end of the year, Meliore, Inc., actually produced 310,000 units of the standard model and 115,000 of the deluxe model. The actual overhead costs incurred were:

Maintenance $64,100

Power 12,420

Indirect Labor 129,400

Rent 31,500

using excel, prepare a performance report for the information in 8.28 using a flexible budget and a static budget.