MBA 620 Week 4 Homework 1. Pleasanton Products manufactures DVD storage cases. Budgeted fixed manufacturing overhead is $12,000 per month. Following is standard cost information for each storage case: Direct materials 2 board feet @ $4/bf 1 hour $9/labor hr 1 labor hr. Lumber Direct labor Variable overhead In January, Pleasanton predicted to produce and sell 5,000 cases every month. Prepare a standard cost budget for the July manufacturing activities. a. b. During July, the company produced 5,200 storage cases while incurring the following manufacturing costs: Direct materials (11,000 board feet used Direct labor (5,000 labor hours used) Variable overhead Fixed overhead Total $46,200 45,100 14,000 15,500 $120,800 Prepare a flexible budget performance report for the July manufacturing activities (comparing the flexible budget to actual costs) c. Calculate the direct materials price and quantity variances. d. Calculate the direct labor rate and efficiency variances. e. Calculate the variable overhead spending and efficiency variances f. Calculate the fixed overhead budget variance