Indigo Company estimates that it will produce $7,000$ units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $$6,$ direct labor $$13,$ and overhead $$19.$ Monthly budgeted fixed manufacturing overhead costs are $$8,500$ for depreciation and $$3,700$ for supervision.

In the current month, Indigo actually produced $7,500$ units and incurred the following costs: direct materials $$39,186,$ direct labor $$89,700,$ variable overhead $$140,980,$ depreciation $$8,500,$ and supervision $$3,996.$

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.$)$

INDIGO COMPANY Static Budget Report

Differenc

Favorab

Budget

Actual

Unfavoral