In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 units of the deluxe model during the coming year. The standard model requires 0.05 direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each of the four overhead items:
Cost Formula
Maintenance...................$34,500 + $1.25 DLH
Power...........................$0.50 DLH
Indirect labor...................$68,400 + $2.30 DLH
Rent..............................$31,500
At the end of the year, Meliore, Inc., actually produced 310,000 units of the standard model and 115,000 of the deluxe model. The actual overhead costs incurred were:
Maintenance...................$64,100
Power...........................12,420
Indirect labor...................129,400
Rent..............................31,500
Required:
Prepare a performance report for the period. If an amount is zero, enter "0".ss