2. The cost accountant for Bradley, Inc., prepared the following monthly performance report relating to the Finishing Department:

	Budgeted Production (6,000 Units)	Actual Production (6,500 Units)
Direct Materials used	90,000	99,600
Direct Labor	48,000	55,200
Variable Manufacturing Overhead	6,000	9,000
Fixed Manufacturing Overhead	66,000	64,200

(a) Compute the amounts that should be included for each of the following in a flexible budget prepared for a 6,500-unit level of production:

(1) Direct materials: $_______________ (2) Direct labor: $_______________ (3) Variable manufacturing overhead: $_______________ (4) Fixed manufacturing overhead: $_______________

(b) Assume that a revised performance report is prepared for the 6,500-unit level of production using a flexible budget approach. Compute the cost variances for each of the following. Indicate whether each variance is favorable (F) or unfavorable (U). (1) Direct materials: $_______________ (2) Direct labor: $_______________ (3) Variable manufacturing overhead: $_______________ (4) Fixed manufacturing overhead: $_______________