Question
Multiple Product Performance Report Storage Products manufactures two models of DVD storage cases: regular and deluxe. Presented is standard cost information for each model: Cost
Multiple Product Performance Report Storage Products manufactures two models of DVD storage cases: regular and deluxe. Presented is standard cost information for each model:
Cost Components |
| Regular |
| Deluxe |
---|---|---|---|---|
Direct materials |
|
|
|
|
Lumber | 2 board feet $3 = | $6.00 | 3 board feet $3 = | $9.00 |
Assembly kit | = | 2.00 | = | 2.00 |
Direct labor | 1 hour $4 = | 4.00 | 1.25 hours $4 = | 5.00 |
Variable overhead | 1 labor hr. $2 = | 2.00 | 1.25 labor hrs. $2 = | 2.50 |
Total |
| $14.00 |
| $18.50 |
Budgeted fixed manufacturing overhead is $14,000 per month. During July, the company produced 9,000 regular and 5,000 deluxe storage cases while incurring the following manufacturing costs:
Direct materials | $130,000 |
---|---|
Direct labor | 62,000 |
Variable overhead | 27,000 |
Fixed overhead | 16,500 |
Total | $235,500 |
Prepare a flexible budget performance report for the July manufacturing activities.
| Actual | Flexible Budget | Flexible Budget Variance | |
---|---|---|---|---|
Volume |
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Regular | Answer | Answer |
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Deluxe | Answer | Answer |
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Variable costs |
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Direct materials |
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Labor |
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Regular |
| $Answer |
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Deluxe |
| Answer |
|
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Assembly kits |
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|
Regular |
| Answer |
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Deluxe |
| Answer |
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Total | $Answer | Answer | Answer | AnswerFU |
Direct labor |
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Regular |
| Answer |
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Deluxe |
| Answer |
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Total | Answer | Answer | Answer | AnswerFU |
Variable overhead |
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Regular |
| Answer |
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Deluxe |
| Answer |
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Total | Answer | Answer | Answer | AnswerFU |
Fixed overhead | Answer | Answer | Answer | AnswerFU |
Total | $Answer | $Answer | $Answer | AnswerFU |
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