Actual Results
		(125,000 units)
Materials
Fabric	125,000 yds @ $5.50/yd	$687,500
Steel tubing	32,000 lbs @ $12.20/lb	390,400
Padding	65,000 lbs @ .49/lb	31,850
Direct Labor
Machining	35,000 hrs @ $18/hr	630,000
Assembly	11,000 hrs @ $11.50/hr	126,500
Overhead
Rent		96,000
Property taxes		10,000
Other Overhead		210,000
Total		$2,182,250

Following is Perry Corporations original budget for 2014, and their actual results for 2014. [24 points]

		Original Budget
		(100,000 units)
Materials
Fabric	100,000 yds @ $5.40/yd	$540,000
Steel tubing	25,000 lbs @ $12.10/lb	302,500
Padding	50,000 lbs @ $.50/lb	25,000
Direct Labor
Machining	30,000 hrs @ $19/hr	570,000
Assembly	10,000 hrs @ $11.80/hr	118,000
Overhead
Rent		100,000
Property taxes		10,000
Other Overhead (25% variable)		200,000
Total		$1,865,500

Using the format on the following page, prepare the flexible budget needed to evaluate Perry Corporations performance for 2014, and compute the Flex-Actual Variances. Show your calculations.

	Calculations	Flexible Budget	Actual (125,000 units)	Flex Actual Variances
Materials
Fabric		540,000	$687,500
Steel tubing		302,500	390,400
Padding		25,000	31,850
Direct Labor
Machining			630,000
Assembly			126,500
Overhead
Rent			96,000
Property taxes			10,000
Other Overhead (25% variable)			210,000
Total			$2,182,250