A Corporation had planned to produce 50,000 units of product during the first quarter of the current year. The company prepared the following budget on May 1:

	Budgeted (50,000 units)
Variable costs:
Direct materials used	$	36,000
Direct labor		45,000
Variable overhead		22,500
Fixed costs:
Manufacturing overhead		58,500
Total manufacturing costs	$	162,000

During the first quarter, the company produced 60,000 units and incurred total manufacturing costs of $184,000.

A performance report for the company's first quarter of operations using a flexible budget approach would show:

Multiple Choice

• Actual costs over budget by $15,150.

• Actual costs over budget by $11,700.

• Actual costs over budget by $1,300.

• Total costs per the flexible budget of $194,400.