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 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 $16,000 per month. During July, the company produced 7,000 regular and 3,000 deluxe storage cases while incurring the following manufacturing costs:

Direct materials	$90,000
Direct labor	44,000
Variable overhead	18,000
Fixed overhead	18,500
Total	$170,500

Prepare a flexible budget performance report for the July manufacturing activities:

	Actual	Flexible Budget	Flexible Budget Variance
Volume
Regular	Answer	$ Answer
Deluxe	Answer	Answer
Variable costs
Direct materials
Labor
Regular		Answer
Deluxe		Answer
Assembly kits
Regular		Answer
Deluxe		Answer
Total	$ Answer	Answer	Answer	Answer F or U
Direct labor
Regular		Answer
Deluxe		Answer
Total	Answer	Answer	Answer	Answer F or U
Variable overhead
Regular		Answer
Deluxe		Answer
Total	Answer	Answer	Answer	Answer F or U
Fixed overhead	Answer	Answer	Answer	Answer F or U
Total	$ Answer	$ Answer	$ Answer	Answer F or U

Answer 1

Actual [Α] Flexible Budget Flexible Budget Variance [B] [A-B] 7,000 3,000 7,000 3,000 42,000 27,000 Volume Regular Deluxe Variable Costs Direct Materials Labor Regular Deluxe Assemble Kits Regular Deluxe Total Direct labor Regular Deluxe Total Variable Overhead Regular Deluxe Total Fixed Overhead Total 14,000 6,000 89,000 $ 90,000 1,000U 28,000 15,000 43,000 44,000 1,000 U 18,000 18,500 170,500 14,000 7,500 21,500 16,000 169,500 3,500 F 2,500U 1,000U $

Deluxe 3,000 Working Notes Calculation of Flexible Budget Variable Costs Regular Actual Production 7,000 Direct Materials: Lumber (7,000 $ 6); (3,000 $ 9) 42,000 Assembly Kit (7,000 $ 2); (3,000 x $ 2) 14,000 27,000 6,000 Direct Labor (7,000 x $ 4); (3,000 $5) 28,000 15,000 Variable Overhead (7,000 x $ 2); (3,000 x $ 2.50) 14,000 7,500