Flounder Company estimates that it will produce $6,000$ units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $$8,$ direct labor $$13,$ and overhead $$19.$ Monthly budgeted fixed manufacturing overhead costs are $$7,700$ for depreciation and $$3,700$ for supervision.

In the current month, Flounder actually produced $6,500$ units and incurred the following costs: direct materials $$44,976,$ direct labor $$76,400,$ variable overhead $$122,094,$ depreciation $$7,700,$ and supervision $$3,959.$

Prepare a static budget report. Hint: The Budget column is based on estimated production while the Actual column is the actual cost incurred during the period. $($List variable costs before fixed costs.$)$

FLOUNDER COMPANY Static Budget Report

Difference

Favorable

Budget

Actual

Unfavorabl