I need help in how to calculate flex budget for the \"answer\" sections below. A

Question

I need help in how to calculate flex budget for the "answer" sections below. Any help would be appreciated.

Multiple Product Performance Report

Storage Products manufactures two models of DVD storage cases: regular and deluxe. Presented is standard cost information for each model:

Budgeted fixed manufacturing overhead is $12,000 per month. During July, the company produced 5,000 regular and 3,000 deluxe storage cases while incurring the following manufacturing costs:

Prepare a flexible budget performance report for the July manufacturing activities.

Total

Cost Components Regular Deluxe Direct materials Lumber 2 board feet x $ 4 = $ 8.00 3 board feet x $ 4 = $ 12.00 Assembly kit = 2.00 = 2.00 Direct labor 1 hour x $ 4 = 4.00 1.25 hours x $ 4 = 5.00 Variable overhead 1 labor hr. x $ 2 = 2.00 1.25 labor hrs. x $ 2 = 2.50 Total $ 16.00 $ 21.50

Explanation / Answer

Flexible Budget Performance Report for July:

Actual Flexible Budget Variances Volume Regular 5,000 5,000 Deluxe 3,000 3,000 Direct materials cost $ 99,000 $ 92,000 $ 7,000 U Direct labor cost $ 36,000 $ 35,000 $ 1,000 U Variable manufacturing overhead $ 14,000 $ 17,500 $ 3,500 F Fixed manufacturing overhead $ 15,500 $ 12,000 $ 3,500 U Total manufacturing cost $ 164,500 $ 156,500 $ 8,000 U

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