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Acme Companys production budget for August is 18,600 units and includes the following component unit costs: direct materials, $8.00; direct labor, $11.50; variable overhead, $5.00.

Acme Companys production budget for August is 18,600 units and includes the following component unit costs: direct materials, $8.00; direct labor, $11.50; variable overhead, $5.00. Budgeted fixed overhead is $43,000. Actual production in August was 19,998 units, actual unit component costs incurred during August include direct materials, $10.00; direct labor, $10.50; variable overhead, $6.00. Actual fixed overhead was $45,600.

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Prepare a performance report, including each cost component. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

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