In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 units of the deluxe model during the coming year. The standard model requires 0.05 direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each of the four overhead items:
|Maintenance||$34,300 + $1.25 DLH|
|Indirect labor||$68,200 + $2.30 DLH|
At the end of the year, Meliore, Inc., actually produced 310,000 units of the standard model and 115,000 of the deluxe model. The actual overhead costs incurred were:
Prepare a performance report for the period. If there is no variance, enter "0" for the amount and select "NA" in the last column.
|For the Year Ended December 31|
|DLH for units produced||NA|
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