ssume Pierre Computer Company has created a standard cost card for the PCC model tablet computer, with overhead Ilocated based on direct labor hours:

$($Click the icon to view the standard costs.$)$

During the month of September, Pierre Computer Company incurred the following costs while manufacturing $7$ PCC model tablets:

$($Click the icon to view the actual costs.$)$

Read the requirements.

Requirement $1.$ Prepare a flexible budget for September for $500,600,$ and $700$ PCC mo

Requirements

Prepare a flexible budget for September for $500,600,$ and $700$ PCC model tablets. The tablet has a standard sales price of $$590.$ List variable costs separately.

Using $600$ PCC model tablets for the static budget, prepare a flexible budget performance report for September. Total sales revenue for the month was $$427,000.$ The company sold $700$ tablets.

What insights can the management of Pierre Computer Company draw from the performance report?

Standard Costs

$\backslash$table$[[$Direct materials,$$320$ per tablet$],[$Direct labor,$4$ hours per tablet at $$21$ per hour$],[$Variable overhead,$4$ hours per tablet at $$12$ per hour$],[$Fixed overhead,$$42,000$ per month$]]$

Print

Print

Done

Actual Costs

$\backslash$table$[[$Direct materials,$$231,700$