After Class Practice 6-1 Back again Inc. produces and sells a chair that offers relief for back pain. All products are made to order so the only inventory maintained is raw materials. Information about the actual and standard costs of production are provided below: Standard Price Standard Qty Standard Cost Direct material $5 per yard 10 yards $ 50 Direct labor $8 per DLH 5 hours 40 Variable overhead $7 per DLH 5 hours 35 $125 Actual costs: Actual Price Actual Qty Direct material purchased and used $5.25 per yard 133,400 $700,350 Direct labor cost $7.80 per DLH 79,750 622,050 Variable overhead costs incurred 533,600 Variable selling and administrative 148,625 Fixed overhead costs incurred 195,000 Fixed selling and administrative 140,000 Sales revenue 2,972,500 Total Cost Other information: Planned production 15,000 units Actual production 14,500 units Budgeted fixed overhead $200,000 Budget selling and administrative 140,000 Budgeted sales price $200 per unit Budgeted variable selling and administrative $10 per unit Required: 1. Prepare flexible budget performance report showing the following columns: (ck figures Actual operating profit, $632,875, Static budget operating profit, $635,000) Flexible Budget Flexible Sales Volume Static Budget Actual Results Variance Budget Variance 6-11 2. Compute materials, labor and variable overhead variances. (ck figures: material qty variance, $58,000 F; VOH spending variance $24,650))