Beverage Products Company specializes in 12-ounce drinking glasses. The president asks the controller to prepare a performance report for April. The following report was handed to her a few days later.

Cost Category (Variable Unit Cost)		Budgeted Costs	Actual Cost	Difference Under (over) Budget
Direct Materials (0.10)		5,000	4,975	25
Direct labor (0.12)		6,000	5850	150
Variable overhead
	Indirect labor (0.03)	1,500	1,290	210
	Supplies (0.02)	1,000	90	40
	Heat and power (0.03)	1,500	1,325	175
	Other (0.05)	2,500	2,340	160
Fixed Overhead
	Heat and power	3,500	3,500	---
	Depreciation	4,200	4,200	---
	Insurance and taxes	1,200	1,200	---
	Other	1,600	1,600	---
Totals		28,000	27,240	760

In discussing the report with the controller, the president stated,