1. Given the following performance report, determine the total
amount of variance and if it is favorable or unfavorable. Actual
costs: Maintenance is $50,000; Power is $80,000; and Indirect Labor
is $10,000. Budgeted costs: Maintenance is $45,000; Power is
81,000; and Indirect Labor is $8,000.
2. We prepare a budget based on manufacturing 20,000 chairs this
month. Budgeted costs are: Fixed manufacturing costs = $50,000 per
month; Variable manufacturing costs = $10 per chair. However; we
actually produced 21,000 chairs during March. How much is the
flexible budget for March?
3. Please determine the total amount of Direct Labor in our
Budget for January and February together given the following
information: Direct labor per unit = .25 hours; Direct labor rate
is $30 per hour; Expected number of units to produce in January is
20,000 units and in February is 15,000 units.