Bug Ltd manufactures one uniform product. Activity levels in the assembly department are an average level of activity of 20,000 units production per four-week period. The actual results for four weeks in October are:

	Budget 20,000 units	Actual 17,600 units
Direct labour	20,000	19,540
Direct expenses	800	1,000
Direct material	4,200	3,660
Depreciation	10,000	10,000
Semi-variable overheads	5,000	4,760
	40,000	38,960

Assume that at a level of production of 15,000 units, semi-variable overheads are forecast to be $4,500.

Produce a budgetary control statement showing the actual costs, flexed costs and variances produced.

But why does the exercise tell us about the semi-variable overheads which are forecasted at 4,500 for activity level of 15,000 units if we don't need it?