Flexible Budget, Overhead Variances Shumaker Company manufactures a line of high-top basketball shoes. At the beginning of the year, the following plans for production and costs were revealed: 55,000 Pairs of shoes to be produced and sold Standard cost per unit: Direct materials S 15 Direct labour 12 Variable overhead 6 Fixed overhead 3 Total unit cost $ 36 During the year, a total of 50,000 units were produced and sold. The following actual costs were incurred: Direct materials 5775,000 Direct labour 590,000 Variable overhead 310,000 Fixed overhead 180,000 There were no beginning or ending inventories of raw materials. In producing the 50,000 units, 63,000 hours were worked, 5 percent more hours than the standard allowed for the actual output. Overhead costs are applied to production using direct labour hours. Required: : 1. Using a flexible budget, prepare a performance report comparing expected costs for the actual production with actual costs. In the variance type column, type "F" for favourable and "U" for unfavourable. If the variance is zero, enter ("0") in the variance amount column and "N" for neither in the variance type column. (Note: Be sure to use capital letters.) Shumaker Company Performance Report Actual Costs Budgeted Costs Budget Variance Variance Type (For U or N) Direct materials Direct labour Variable overhead Fixed overhead Total 2a. Determine the fixed overhead spending and volume variances. Spending variance Volume variance 2b. Determine the variable overhead spending and efficiency variances. Spending variance Efficiency variance Check My Work 3 more Check My Work uses remaining. Previous Next