In setting up the master budget for the first quarter of the year, Cool-U expected to produce 1,060 t-shirts. When the quarter had ended, Cool-U found that it had actually produced 1,200 t-shirts. The following information are available for the first quarter.

Data from Master Budget Actual Data for Quarter

Budgeted production for Production 1,200units

Quarter 1: 1,060

Materials: Materials costs 4,830

1 Plain t-shirt @ 3.00

5 Ounces of ink @ 0.20

Labour: 0.12hrs @ 10.00 Labour costs 1,500

Variable Overhead: Variable overhead:

Maintenance 0.12hr@ 3.75 Maintenance cost 535

Power 0.12hr @1.25 Power cost 170

Fixed Overhead Fixed Overhead

Ground keeping 1,200 per quarter Grounds keeping 1,050

Depreciation 600 per quarter Depreciation 600

Required

Prepare a performance report using the static budget (that is, based on the expected production of 1,060 t-shirts), and flexible budget for 1,200 t-shirts.