Eric's Derricks is a manufacturer of mid$-$size derricks for use in oil well operations. The

company makes use of flexible budgeting to account for seasonal and$/$or cyclical

changes given the nature of the business.

The following budgeted data on manufacturing costs has been provided for March:

The actual data for March was as follows:

Required:

Prepare a report comparing the actual results with a flexible budget $[$for the actual

production level$]$ for March. What do the numbers tell you? What would management draw

for the report?