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Blordin Corp. applies overhead on the basis of direct labor hours. For the month of March, the company planned production of 8,000 units (80% of
Blordin Corp. applies overhead on the basis of direct labor hours. For the month of March, the company planned production of 8,000 units (80% of its production capacity of 10,000 units). During March, the company operated at 90% capacity (9,000 units). Their actual and budget cost information follows:
Description Production in units Budgeted overhead Actual 9,000 Master Differences 8,000 1,000F $10,000 $10,000 0 Indirect materials Indirect labor Power Maintenance Total variable costs 16,000 4,500 3,000 33,500 16,000 0 500U 2,0001,000U 32,000 1,500UU 4,000 Fixed overhead costs Rent of factory building Depreciation-factory Taxes & Insurance Supervisory salaries 12,000 19,200 3,000 14,000 48,200 12,000 20,000 2,400 13,600 48,000 0 800F 600U 400U 200U Total fixed costs Total overhead costs $81,700 $80,000 1,700U Standard direct labor hours were 32,000 ofr the month Required: 1. Prepare the flexible budget performance reportStep by Step Solution
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