Preparing a monthly overhead performance report. A portion of the flexible overhead budget of the Assembly Department of the Vista Company for 19X3 is shown.

Capacity is 100,000 direct labor hours. Production is expected to be equal during each month of the year. In April, a total of 8,400 hours were worked. The cost of indirect materials was $11,200 and the cost of utilities was $3,700.

Compute the budgeted amounts for these two cost elements based on the actual volume achieved in the month, and compute the amounts by which the actual costs were over (or under) these budgeted accounts.

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Item Indirect Materials Utilities Variable Cost Element per Hour $.80 .40 Total Budgeted Cost at Fixed Cost Element 90% of Capacity 100% of 110% of Capacity Capacity $36.000 $108,000 $116,000 $124,000 1,200 37,200 41,200 45,200