Fiberfill	3 lbs.	$.55/lb.
Goose down	8 lbs.	$2.90/lb.
Fabric	4 yards	$4.40/ yd.
Cutting	.40 hour	$14.30 per hour
Sewing	.60 hour	$15.00 per hour
Finishing	.75 hour	$15.10 per hour
Var. Overhead	1.75 hours	$2.00 per DLHR
Fixed Overhead	1.75 hours	$3.00 per DLHR

Fixed Overhead:    (Based on ESTIMATED monthly production of 2,200 units): 

Monthly Budgeted Fixed OH would be:  $___________

REQUIRED:

Prepare Monthly variance reports for Material Variances (price and quantity) for each material, Labor Variances for each department (rate and efficiency), and Factory Overhead Variances (four variance method). 

Create a business memo mentioning areas of concern, all variances +/- over $1,000 or any concerning trends. 

Production Units Direct Labor: Cutting: Hours Costs Sewing: Hours Costs Finishing: Hours Costs Materials Used: Fiberfill: Pounds Price Down: Pounds Price ACTUALS FOR COMFORTER PROJECT Cotton fabric: Yards Price Fixed Variable JULY 1,900 750 $ 10,700.00 $ AUGUST 990 $ 14,250.00 $ 5,800 $ 2,700.00 $ Ten Factory Overhead:Actual Costs $ 10,888.00 $ 6,550.00 $ $ 1,955 770 1,450 1,450 $ 21,750.00 $ 21,895.00 $ SEPTEMBER 11,000.00 $ 988 14,750.00 $ 15,400 15,600 $ 37,000.00 $ 39,125.00 $ 7800 7800 $ 35,000.00 $ 35,110.00 $ 5,870 3,000.00 $ 10,890.00 $ 6,600.00 $ 2,030 805 11,270.00 1,010 15,450.00 1,555 23,014.00 6,109 3,088.00 16,250 40,785.00 8105 36,510.00 11,001.00 6,770.00