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	AnswerFU
Direct labor
Regular		Answer
Deluxe		Answer
Total	Answer	Answer	Answer	AnswerFU
Variable overhead
Regular		Answer
Deluxe		Answer
Total	Answer	Answer	Answer	AnswerFU
Fixed overhead	Answer	Answer	Answer	AnswerFU
Total	$Answer	$Answer	$Answer	Answer

Answer 1

	ACTUAL	FLEXIBLEBUDGET	FLEXIABLE BUDGET VARIENCE
VOLUME
regular	7000	7000
delux	3000	3000
VARIABLE COST
DIRECT MATERIAL
regular		42000 (7000*6)
delux		27000 (3000*9)
ASSEMBLY KITS
regular		14000 (7000*2)
delux		6000 (3000*2)
TOTAL	44000	43000	1000 Unfavourable
DIRECT LABOUR
regular		28000 (7000*4)
delux		15000 (3000*5)
TOTAL	90000	89000	1000 Unfavourable
VARIABLE OVERHEADS
regular		14000 (7000*2)
delux		7500 (3000*2.5)
TOTAL	18000	21500	3500 Favourable
fixed ovberheads	18500	16000	2500 Unfavourable
total	170500	169500	1000 Unfavourable