1.04 3 points 03:50:33 eBook References Problem 11-39 Budgets and Performance Evaluation (LO 11-1, 11-6) Johnson Electrical produces industrial ventilation fans. The company plans to manufacture 81,000 fans evenly over the next quarter at the following costs: direct material, $1,863,000; direct labor, $567,000; variable production overhead, $643,950; and fixed production overhead, $966,000. The $966,000 amount includes $99,000 of straight-line depreciation and $123,000 of supervisory salaries. Shortly after the conclusion of the quarter's first month, Johnson reported the following costs: Direct material Direct labor Variable production overhead Depreciation Supervisory salaries Other fixed production overhead Total $ 603,300 185,000 218,000 33,000 43,300 246,000 $1,328,600 Dave Kellerman and his crews turned out 26,000 fans during the month-a remarkable feat given that the firm's manufacturing plant was closed for several days because of storm damage and flooding. Kellerman was especially pleased with the fact that overall financial performance for the period was favorable when compared with the budget. His pleasure, however, was very short-lived, as Johnson's general manager issued a stern warning that performance must improve, and improve quickly, if Kellerman had any hopes of keeping his job.