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 Deluse Direct materials 2 board feet x s4 Lumber s8.00 3 board feetx s4512.00 Assembly kit 200 200 125 hours S4H Direct labor 1 hour x $4 400 5.00 Variable overhead 200 125 abor hrs. x52 $16.00 1 abor hr xs 2 250 $ 21.50 Total Budgeted fixed manufacturing overhead is $12,000 per month. During July, the company produced 5,000 reguiar and 3,000 deluxe storage cases while incurring the following manufacturing costs Direct materials 99,000 36.000 Direct labor 14.000 Variable overhead Fred overhead 15.500 s 164.500 Total Prepare a flexible budget performance report for the july manufacturing activities Flesible Budget Flexible Budget Variance Actual Volume Regular 0x Dele Yariable Cost Direct maneras Lumser Regua Deluse Assembly k Regu Delure Total Direct labar Regular Delue 0U 0w aae hea 0M Regvier Deluse Yate U Telal Check Coarch WAlinddoum

Answer 1

	Actual	Flexible Budget	Flexible Budget Variance
Volume
Regular	5000	5000
Deluxe	3000	3000
Variable Costs
Direct materials
Lumber
Regular		40000
Deluxe		36000
Assembly kits
Regular		10000
Deluxe		6000
Total	99000	92000	7000	U
Direct labor
Regular		20000
Deluxe		15000
Total	36000	35000	1000	U
Variable overhead
Regular		10000
Deluxe		7500
Total	14000	17500	3500	F
Fixed overhead	15500	12000	3500	U
Total	164500	156500	8000	U

Working:

Variable Costs
Direct materials
Lumber
Regular		=5000*8
Deluxe		=3000*12
Assembly kits
Regular		=5000*2
Deluxe		=3000*2
Direct labor
Regular		=5000*4
Deluxe		=3000*5
Variable overhead
Regular		=5000*2
Deluxe		=3000*2.5