Determine the total dollar amounts for the above items that would appear in a flexible budget at the following volume levels, assuming that both levels are within the relevant range: a. 8,000-unit level of sales and production b. 12,000-unit level of sales and production (Hint: You must first determine the unit selling price and certain unit costs.) E7-7 Preparing a flexible budget Using the following per-unit and total amounts, prepare a flexible budget at the 14,000-, 15,000-, and 16,000-unit levels of production and sales for Celestial Products, Inc.: Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 75.00 Direct materials per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24.00 Direct labor per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7.50 Variable factory overhead per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15.00 Fixed factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 75,000 Variable selling and administrative expense per unit . . . . . . . . . . . . . . $ 12.00 Fixed selling and administrative expense . . . . . . . . . . . . . . . . . . . . . . . . $ 80,000 E7-8 Preparing a performance report Strand Manufacturing, Inc., has the following flexible budget formulas and amounts: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25 per unit Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 per unit Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 per unit Variable factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 per unit Variable selling and administrative expense . . . . . . . . . . . . . . 1 per unit Fixed factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000 per month Fixed selling and administrative expense . . . . . . . . . . . . . . . . . $20,000 per month Actual results for the month of May for the production and sale of 5,000 units were as follows: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,000 Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,000 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000 Variable factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,500 Variable selling and admin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,500 Fixed factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,750 Fixed selling and admin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,800 Prepare a performance report for the month of May that includes the identification of the favorable and unfavorable variances. LO3 LO3 370 Principles of Cost Accounting