A. Prepare an appropriate budget report based on flexible budget information

B. Based on all of the available information, what advice would you give to the company president?

1. As accounting manager for Datum Company, Inc., you are given the following budget report by the production manager for manufacturing overhead. The production manager was very proud in how well he controlled costs and believes the company president will be impressed with the considerable cost savings for the company ($36,300, about 7% under budget) Before making a recommendation to the company president, you decide to begin your investigation by analyzing the report and considering the effect of activity levels on the budget Datum Company, Inc. Manufacturing Overhead Budget Report Year Ended December 31, 2016 Budget Actual fference Machine Hours 80,000 70,000 Variable Manufacturing Overhead Indirect Labor Indirect Materials Plant Utilities Plant Machinery Maintenance $166,400 118,800 11,200 54.800 351,200 $148,800 109,700 9,600 46.300 314,400 $17,600 F 9,100 F 1,600 F 8,500 F 36,800 F Total Variable Manufacturing Overhead Fixed Manufacturing Overhead Supervisory Salaries Plant Machinery Depreciation Factory Property Taxes Factory Insurance 75,000 42,000 22,000 25,600 164600 $515,300$479,000$36.300 F 75,000 41,000 22,500 25,600 164100 1,000 U 500 F Total Fixed Manufacturing Overhead 500 U Total Manufacturing Overhead