Boards, Inc., produced and sold 10,000 keyboards for personal computers in Year 1, its first year of operation. Boards buys kits of components, then assembles the components into keyboards, then packages and ships the keyboards to major computer manufacturers. Relevant data follow:

Actual Results for the Year 1:

Direct Materials: 10,100 kits at $19.................................................................. $191,900

Direct Labor: 2,200 Hours at $31....................................................................... $68,200

Manufacturing Overhead ($81,000 fixed)......................................................... $125,000

Actual Marketing and Administrative Costs ($45,000 fixed)........................... $100,000

Total Revenue: 10,000 Units at $62.................................................................. $620,000

Standard Variable Costs per Unit:

Materials: 1 kit at $20 per Kit ............................................................................ $20

Labor: 0.2 Hours at $30 ....................................................................................... $6

Variable Overhead: $20 per direct labor hour ...................................................... $4

Budget Information:

Budgeted Fixed Manufacturing Costs................................................................. $80,000

Master Budget Sales Volume....................................................................... 11,000 Units

Budget Marketing and Administrative Costs........................ $50,000 + $5 per Unit Sold

Budget Sales Price ........................................................................................ $60 per Unit

Prepare profit and cost variance analyses such as those in Exhibit 10.7.