After a few days' work, Hector developed the following flexible budget formulas, all with a coefficient...

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After a few days' work, Hector developed the following flexible budget formulas, all with a coefficient of determination greater than 90%: Direct materials cost = $5X, where X = Direct labor hours Direct labor cost = $15x, where x = Direct labor hours Power cost = $68,000 + 0.9Y, where Y = Machine hours Setup cost $98,000+ $400Z, where Z = Number of setups The actual measures for each of the activity drivers are as follows: Direct labor hours 20,000 Machine hours Number of setups 90,000 110 5. Using the newly developed formulas, calculate what the costs should have been for the actual measures of activity for each of the four manufacturing activities. What are the total after-the-fact budgeted manufacturing costs? $ 691,000 How does this compare with the total expected costs calculated in Requirement 1? The expected costs are $ 409,000 higher than those of Requirement 1 giving a much higher benchmark than the single-driver flexible budget formulas gave. 6. Prepare a performance report using the flexible budget outcomes in Requirement 5. Actual Budgeted Direct Materials $ 100,000 $ Direct Labor 300,000 Power 149,000 Setups 142,000 Total 691,000 Variance No variance Unfavorable Favorable Favorable Unfavorable After a few days' work, Hector developed the following flexible budget formulas, all with a coefficient of determination greater than 90%: Direct materials cost = $5X, where X = Direct labor hours Direct labor cost = $15x, where x = Direct labor hours Power cost = $68,000 + 0.9Y, where Y = Machine hours Setup cost $98,000+ $400Z, where Z = Number of setups The actual measures for each of the activity drivers are as follows: Direct labor hours 20,000 Machine hours Number of setups 90,000 110 5. Using the newly developed formulas, calculate what the costs should have been for the actual measures of activity for each of the four manufacturing activities. What are the total after-the-fact budgeted manufacturing costs? $ 691,000 How does this compare with the total expected costs calculated in Requirement 1? The expected costs are $ 409,000 higher than those of Requirement 1 giving a much higher benchmark than the single-driver flexible budget formulas gave. 6. Prepare a performance report using the flexible budget outcomes in Requirement 5. Actual Budgeted Direct Materials $ 100,000 $ Direct Labor 300,000 Power 149,000 Setups 142,000 Total 691,000 Variance No variance Unfavorable Favorable Favorable Unfavorable