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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 | ||||
| Regular |
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| Deluxe |
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| Variable costs | ||||
| Direct materials | ||||
| Labor | ||||
| Regular |
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| Deluxe |
| |||
| Assembly kits | ||||
| Regular |
| |||
| Deluxe | ||||
| Total |
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| Direct labor | ||||
| Regular |
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| Deluxe | ||||
| Total |
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| Variable overhead | ||||
| Regular | ||||
| Deluxe | ||||
| Total |
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| |
| Fixed overhead |
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| |
| Total | $
| $
| $
| |
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