The Sanibel Corporation produces an industrial chemical. They use a standard cost system and apply MOH based on DLH. At the beginning of 2017, the company had the following information:
Expected Overhead - Variable	$5,000
Expected Overhead - Fixed	$20,000
DM per Unit	3	Pounds
Cost of DM	$4	Per Pound
DLH per Unit	2	DLH
Cost of DL	$6	Per DLH
Expected production	5,000	Units
Actual Information for 2017 was as follows:
Actual production	6,000	Units
Quantity of DM purchased	24,000	Pounds
Cost of DM	$4.50	Per Pound
DM used in production	18,500	Pounds
Actual DLH	11,500	DLH
Cost of DL	$74,750
Actual Fixed Overhead	$21,000
Actual Variable Overhead	$6,380

Prepare Static Budget
Prepare a static budget analysis of production costs
	Static Budget	Actual	Variance	U or F
Volume
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total

Part 3: Prepare Flexible Budget (Budget for actual level of production)
Prepare a flexible budget analysis of production costs for actual production level
	Flexible Budget	Actual	Variance	U or F
Volume
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total