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Prepare a performance report for the period. If there is no variance, enter "0" for the amount and select "NA" in the last column. Meliore, Inc. Performance Report For the Year Ended December 31 Actual Budget Variance DLH for units produced 24.700 V 24,700 Production costs: Maintenance Power Indirect labor Rent Total

Prepare a performance report for the period. If there is no variance, enter "0" for the amount and select "NA" in the last column. Meliore, Inc. Performance Report For the Year Ended December 31 Actual Budget Variance DLH for units produced 24.700 V 24,700 Production costs: Maintenance Power Indirect labor Rent Total

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 2P: Sales, production, direct materials, direct labor, and factory overhead budgets King Tire Co.s...
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Flexible Budget 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 $34,300 + $1.25 DLH Power $0.50 DLH Indirect labor $68,200 + $2.30 DLH Rent $31,700 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 $ 63,950 Power 12,410 Indirect labor 129,260 Rent 31,700 Required: Prepare a performance report for the period. If there is no variance, enter "0" for the amount and select "NA" in the last column. Meliore, Inc. Performance Report For the Year Ended December 31 Actual Budget Variance DLH for units produced 24,700 v 24,700 V Production costs: Maintenance х x $ X X Power X X Indirect labor Rent X Total $ X $ X
Transcribed Image Text:Flexible Budget 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 $34,300 + $1.25 DLH Power $0.50 DLH Indirect labor $68,200 + $2.30 DLH Rent $31,700 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 $ 63,950 Power 12,410 Indirect labor 129,260 Rent 31,700 Required: Prepare a performance report for the period. If there is no variance, enter "0" for the amount and select "NA" in the last column. Meliore, Inc. Performance Report For the Year Ended December 31 Actual Budget Variance DLH for units produced 24,700 v 24,700 V Production costs: Maintenance х x $ X X Power X X Indirect labor Rent X Total $ X $ X
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