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Home Products Company manufactures a complete line of kitchen glass-ware. The Beverage Division specializes in...

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Accounting

Home Products Company manufactures a complete line of kitchen glass-ware. The Beverage Division specializes in 12-ounce drinking glasses. Erin Fisher, the superintendent of the Beverage Division, asked the controller to prepare a report of her division's performance in April. The following report was handed to her a few days later: Cost Category (Variable Unit Cost) Budgeted Costs Actual Costs Difference Under (Over Budget Direct materials ($.10) $ 5,000 $ 4.975 5 $25 Direct labor ($.12) 6,000 5,850 150 Variable overhead Indirect labor ($.03) 1,500 1,290 210 Supplies ($.02) 1,000 960 40 Heat and power ($.03) 1.500 1,325 175 Other $.05) 2,500 2,340 160 Fixed overhead Heat and power 3,500 3,500 Depreciation 4,200 4,200 Insurance and taxes 1,200 1,200 Other 1,600 1,600 Totals $28,000 $27,240 $760 Required Prepare a flexible budget for the Beverage Division using production levels of 45.000 units. 50,000 units. and 55,000 units. What is the flexible budget formula? Assume that the Beverage Division produced 46,500 units in April and that all fixed costs remained constant. Prepare a revised report similar to the one above, using actual production in units as a basis for the budget column

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