Assume Piedmont Computer Company has created a standard cost card for the PCC model tablet computer, with overhead allocated based on direct labor hours in the chart below.

During the month of September, Piedmont Computer Company incurred the following costs while manufacturing 1,100 PCC model tablets in the chart below.

Please prepare a flexible budget for September for 900, 1,000, and 1,100 PCC model tablets. The tablet has a standard sales price of $ 675. Please list variable costs separately.

Also, using 1,000 PCC model tablets for the static budget, prepare a flexible budget performance report for September. Total sales revenue for the month was $ 767,800. The company sold 1,100 tablets.

What insights can the management of PCC draw from the performance report?

Thanks in advance

. X Standard Costs 1 $300 per tablet Direct materials 3 hours per tablet at $26 per hour Direct labor 3 hours per tablet at $5 per hour Variable overhead $54,000 per month Fixed overhead i Actual Costs $ 341,000 Direct materials Direct labor 88,000 17,600 Variable overhead Fixed overhead 56,320 Piedmont Computer Company Flexible Budget For the Month Ended September 30 Budget Amounts per Unit 1,000 Units 900 1,100 Sales Revenue Variable Costs: Direct Materials Direct Labor Variable Overhead Total Variable Costs Contribution Margin Fixed Costs Operating Income