Anderson Corporation manufactures a single product. The original budget for May was based on expected production of 50,000 units; actual production for May was 51,500 units. The original budget and actual costs for the manufacturing department are shown below:

Original Budget (based on 50,000 units):

Direct Materials $100,000, Direct Labor $90,000, Variable Overhead $60,000, Fixed Overhead $50,000; Total = $300,000

Actual Costs (based on 51,500 units):

Direct Materials $110,000, Direct Labor $85,000, Variable Overhead $65,000, Fixed Overhead $65,000; Total = $325,000

1. Create an appropriate performance report for the manufacturing department (i.e. prepare the flexible budget, and then the variances).

8.Erikson Company estimates $150,000/month for total fixed costs and the variable costs per unit are estimated at $10.00.

a.Express the total cost in a cost formula.

b.Calculate the total cost based on the following production levels:

15,000 units

20,000 units

25,000 units