Hempstead Corporation plans to manufacture 8,000 units over the next month at the following costs: direct materials, $480,000; direct labor, $60,000; variable manufacturing overhead, $150,000; and fixed manufacturing overhead, $300,000. The last amount, which includes $24,000 of straight-line depreciation, resulted in a total budget of $990,000. Shortly after the conclusion of the month, Hempstead reported the following costs: Direct materials used $490,500 Direct labor 69,600 Variable manufacturing overhead 132,000 Depreciation 24,000 Other fixed manufacturing overhead 272.000 Total $988.100 Howard Krueger and his crews turned out 7,200 unitsa remarkable feat given that the company's manufacturing plant was closed for several days because of blizzards and impassable roads. Krueger was especially pleased with the fact that total actual costs were less than budget. He was thus very surprised when Hempstead's general manager expressed unhappiness about the plant's financial performance. Required: A. Prepare a performance report that fairly compares budgeted and actual costs for the period just ended_namely, the report that the general manager likely used when assessing performance. B. Should Krueger be praised for "having met the budget" or is the general manager's unhappiness justified? Explain, citing any apparent problems for the firm