9 Crafts Inc.. is a manufacturer of furniture. The company has 4 product tires. The manager of the 10 table segment received the following performance report for October from the CEO. The CEO contacted the Table Segment 11 Manager and stated that they needed to meet . so that they could discuss getting this segment back on track. 12 13 Table Segment Performance Report 14 For the month of October 15 Actual Budget Variance 16 Units 3.000 2.500 500 F 17 Variable Production costs: 18 Direct material S 69.300 S 60.000 S 9.300 U 19 Direct labor 54.900 45.000 9900 U 20 Machine time 57.600 48.750 8850 U 21 Production overhead 123.000 105.000 18000 U 22 Fixed Production costs: 23 Indirect labor 28.200 23.000 5200 U 24 Depreciation 16.500 16.500 0 25 Property taxes 7.200 6.900 300 U 26 Insurance 13.500 13.500 0 27 Total costs S 370.200 S 318.650 S 51.550 U 28 29 The Table segment manager heard you just finished a course that discussed flexible budgets. 30 He has asked you to assist him in developing a performance report that compares actual numbers to a flexible budget g actual level. 31 Required: Make sure you do not forget to label the variances U or F. You need to show your work either by cel reference or 32 1. Prepare a new performance report for October using the fleebre performance approach. 33 The variable and fixed cost labeling has been set correctly. so do not change the around. 34 2. Comment on how you developed this revised report and what it means. 35 3. Do you think any of the variances in the report you prepared should be investigated? Why? 36 37 38 Solution: You need to show your work either by cell reference or showing your calculation to the side. 39 #1 Revised Table Segment Performance Report 40 For the month of October Flexible 41 Actual Budget Variance 42 Units 43 Variable Production costs: 44 Direct material 45 Direct labor 46 Machine time 47 Production overhead 48 Fixed Production costs: 49 Indirect labor 50 Depreciation 51 Property taxes 52 Insurance 53 Total Cost 54 2. Comment on how you developed this revised report and what it means 55 56 3. Do you think any of the variances in the report you prepared should be investigated? Why, 57 58