EXHIBIT 14.8 A Detailed Comparison of Actual Variable Costs and Flexible Budget Variable Costs: Product XV-1 (October 2022) SCHMIDT MACHINERY COMPANY October 2022 Product XV-1 Units Manufactured: 780 Actual Variable Costs Incurred Direct materials: Aluminum 3.630 pounds* at $26 per pound $94.380 PVC 720 pounds at $41 per pound 29.520 $123.900 Direct labor 3.510 hours at $42 per hour 147.420 Variable factory overhead 40.630 Total variable cost of goods manufactured $311,950 Variable selling and administrative expenses 39.000 Total variable costs incurred $350,950 Flexible Budget for Variable Costs Direct materials: Aluminum 780 units x 4 pounds per unit * $25 per pound - $78.000 PVC 780 units * 1 pound per unit * $40 per pound - 31,200 $109.200 Direct labor 730 units x 5 hours per unit * $40 per hour - 156.000 Variable factory overhead 790 units x 5 hours per unit * $12 per hour - 46.800 Total standard variable cost of goods manufactured $312,000 Variable selling and administrative expenses 39.000 Total flexible budget variable costs $351,000 Variable Cost Flexible Budget Variances Direct materials: Aluminum $94,380 - $79.000 - $16.380U PVC 29.520 - 31.200 - 1,680F $14.70QU Direct labor 147.420 - 156.000 - 9.580F Variable factory overhead 40.630 - 46.800 - 6,170F Variable manufacturing cost flexible budget variance S 50F Variable selling and administrative expense variance 0 Variable cost flexible budget variance (see L' Exhibit 14.6) 50F