PERFORMANCE REPORT Master Budget Actual Data Budgeted production: 2,500 Actual production: 2,600 units Materials:

2 leather strips @ $3.00 Materials cost: $15,250 Labor:

0.5 hr. @ $12.00 Labor cost: $16,000 Required:

. Prepare a performance report using a budget based on expected production.

. Comment on the limitations of this report.

Exercise