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 X $3= $6
|
3 board feet X $3= $9
|
|
Assembly kit
|
=2
|
=2
|
|
Direct labor
|
1 hour X $4= 4
|
1.25 hours X $4= 5
|
|
Variable overhead
|
1 labor hr X $2= 2
|
1.25 labor hrs X $2= 2.50
|
|
Total
|
$14
|
$18.50
|
Budgeted fixed manufacturing overhead is $15,000 per month. During July, the company produced 5,000 regular and 3,000 deluxe storage cases while incurring the following manufacturing costs:
Direct materials...$80,000
Direct labor....$36,000
Variable overhead...$14,000
Fixed overhead...$17,500
Total......$147,500
Required: Prepare a flexible budget performance report for the July manufacturing activities.