Case Products manufactures two models of DVD storage cases: regular and deluxe. Presented is standard cost information for each model: Cost ComponentsRegular Deluxe
Direct materials
Acrylic sheets3 sheets x $12 =$36.005 sheets x $12 =$60.00
Assembly kit=5.00=5.00
Direct labor0.5 hour x $20 =10.000.75 hours x $20 =15.00
Variable overhead0.5 labor hr. x $5 =2.500.75 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 labor130,800
Variable overhead34,625
Fixed overhead48,150
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
ActualFlexible BudgetFlexible Budget Variance
Volume
Regular AnswerAnswer
Deluxe AnswerAnswer
Variable Costs
Direct materials
Acrylic sheets
Regular Answer
Deluxe Answer
Assembly kits
Regular Answer
Deluxe Answer
Total

Direct labor
Regular Answer
Deluxe Answer
Total
Variable overhead
Regular Answer
Deluxe Answer
Total
Fixed overhead
Total
Please answer all parts of the question.

Solution :

Particulars                      

Volume

              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