Question

Case 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
Acrylic sheets 3 sheets x $12 = $36.00 5 sheets x $12 = $60.00
Assembly kit = 5.00 = 5.00
Direct labor 0.5 hour x $20 = 10.00 0.75 hours x $20 = 15.00
Variable overhead 0.5 labor hr. x $5 = 2.50 0.75 labor hrs. x $5 = 3.75
Total $ 53.50 $83.75
Budgeted fixed manufacturing overhead is $46,000 per month. During July, the company produced 8,000 regular and 3,500 deluxe storage cases while incurring the following manufacturing costs:
Direct materials $561,300
Direct labor 130,800
Variable overhead 34,625
Fixed overhead 48,150
Total $774,875
Prepare a flexible budget performance report for the July manufacturing activities.
CASE PRODUCTS
Manufacturing Activities Performance Report
For the Month of July
Actual Flexible Budget Flexible Budget Variance
Volume
Regular Answer Answer
Deluxe Answer Answer
Variable Costs
Direct materials
Acrylic sheets
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 AnswerFU
Please answer all parts of the question.

Answer 1

`\text{CASE PRODUCTS}`

`\text{Manufacturing Activities Performance Report}`

`\text{ (For the Month of July)}`

Particulars
`\text{Actual}`
`\text{Flexible budget }`
`\text{Flexible budget Variance}`

Volume

`\text{Regular}`
`8000`
`8000`

`\text{Deluxe }` 3500 3500

Variable cost

Direct material

Acrylic sheet

Regular $288,000

Deluxe $210,000

Assembly kits

Regular $40,000

Deluxe $17,500

Total $561,300 $555,500 $5800 U

Direct Labor

Regular $80,000

Deluxe $52,500

Total 130,800 $132,500 $1700 F

Variable overhead

Regular $20,000

Deluxe $13,125

Total $34,625 $33,125 1500 U

Fixed overhead 48,150 $46,000 2150 U

Total $774,875 $767,125 7750 U

Working

Regular Deluxe

8000 3500

Direct Material:

Acrylic sheets(8000 x 36);(3500 x 60) $288,000 $210,000

Assembly kit (8000 x 50); (3500 x 5) $40,000 $ 17500

Direct labor

(8000 x 10) ; (3500 x 15) $80,000 $52,500

Variable overhead

(8000 x 2.50);( 3500 x 3.75) $ 20,000 $ 13,125