Flexible Budget for Varying Levels of Activity

Nashler Company has the following budgeted variable costs per unit produced:

Direct materials $$7\mathrm{.}20$

Direct labor $1\mathrm{.}54$

Variable overhead:

Supplies $0\mathrm{.}23$

Maintenance $0\mathrm{.}19$

Power $0\mathrm{.}18$

Budgeted fixed overhead costs per month include supervision of $$98,000,$ depreciation of $$76,000,$ and other overhead of $$245,000.$

In March, Nashler Company produced $160,000$ units and had the following actual costs:

Direct materials $$1,147,000$

Direct labor $252,900$

Supplies $37,300$

Maintenance $30,350$

Power $28,730$

Supervision $99,500$

Depreciation $76,000$

Other overhead $244,300$

Required:

Question Content Area

$1.$ Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. If there is no variance, enter $"0"$ for the amount and select $"$NA$"$ in the last column.

Nashler Company

Performance Report

blank Actual Cost Flexible Budget Cost Variance

Direct materials $$-$ Select $-$

$$-$ Select $-$

$$-$ Select $-$

Direct labor $-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Supplies $-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Maintenance $-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Power $-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Supervision $-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Depreciation $-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Other overhead $-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Total cost $$-$ Select $-$

$$-$ Select $-$

$$-$ Select $-$

Question Content Area

$2.$ What if Nashler Company's actual direct materials cost were $$1,152,000?$ How would that affect the variance for direct materials? If an amount is zero, enter $"0".$

The materials variance would be $fill in the blank $24019$cffbfdff$8$e$\_1$

$.$

The total cost variance would

by $fill in the blank $24019$cffbfdff$8$e$\_3$

$.$Depreciation

Required:

Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. If there is no variance, enter $"0"$ for the

amount and select $"$NA$"$ in the last column.

What if Nashler Company's actual direct materials cost were $$1,152,000?$ How would that affect the variance for direct materials? If an amount is zero, enter $"0".$

The materials variance would be $

The total cost variance would

by $