Johnson Electrical produces industrial ventilation fans. The company plans to manufacture 78.000 fans evenly over the next quarter at the following costs: direct material, $1,560,000; direct labor, $390,000; varlable production overhead, $495,300; and fixed production overhead, $918,000. The $918,000 amount includes $75.000 of straight-ine depreciation and $114,000 of supervisory salaries: Shortly after the conclusion of the quarter's first month. Johnson reported the following costs: Dave Kellerman and his crews turned out 22,000 fans during the month-a remarkable feat given that the firm's manufacturing plant was closed for several days because of storm damage and flooding. Kellerman was especially pleased with the fact that overall financlal performance for the period was favorable when compared with the budget. His pleasure, however, was very short-lived, as Johnson's general manager issued a stem waming that performance must improve; and improve quickly, if Kellerman had any hopes of keeping his job. Required: 2. Which of the two budgets would be more useful when planning the company's cash needs over a range of activity?? 3. Prepare a performance report that compares static budget and actual costs for the period just ended li.e, the report that Kellerman likely used when assessing his performance). 4. Prepare a performance report that compares flexible budget and actual costs for the period just ended (i.e., the report that the general manager likely used when assessing Kellerman's performance). 5-o. Which of the following two reports is preferred? 5-b. Which of the following statements is false