Flexible Budget In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 units of the deluxe model during the coming year. The standard model requires 0.05 direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each of the four overhead items: Cost Formula $34,500 + $1.25 Maintenance DLH Power $0.50 DLH Indirect $68,400 + $2.30 labor DLH Rent $31,500 At the end of the year, Meliore, Inc., actually produced 310,000 units of the standard model and 115,000 of the deluxe model. The actual overhead costs incurred were: $ Maintenance 64,100 Power 12,420 Indirect 129,400 labor Rent 31,500 Required: Prepare a performance report for the period. If there is no variance, enter "O" for the amount and select "NA" in the last column. Meliore, Inc. Performance Report For the Year Ended December 31 Actual Budget Variance DLH for units produced 24,700 0 NAV Production costs: Maintenance $ 64,100 $ 65,475 X $ 1,275 Favorable Power 12,420 12,350 70 Unfavorable Indirect labor 129,400 125,010 x 4,150 X Unfavorable Rent 31,500 31,500 0 24,700 Total Unfavorable