Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the following actual costs:
Direct materials..... $1,170,000
Direct labor ........ 258,000
Supplies ........ 38,100
Maintenance ........ 30,960
Power ........... 29,300
Supervision ........ 99,450
Depreciation ........ 76,000
Other overhead........ 244,300
Required:
1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced.
2. What if Nashler Company’s actual direct materials cost were $1,175,040? How would that affect the variance for direct materials? The total cost variance?

Exercise 8.13

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Direct materials $7.20 Direct labor 1.54 Variable overhead: Supplies Maintenance 0.23 0.19 Power 0.18