Johnson Electrical produces industrial ventilation fans. The company plans to manufacture $81,000$ fans evenly over the next quarter at the following costs: direct material, $$1,863,000$; direct labor, $$567,000$; variable production overhead, $$643,950$; and fixed production overhead, $$966,000.$ The $$966,000$ amount includes $$99,000$ of straight$-$line depreciation and $$123,000$ of supervisory salaries.

Shortly after the conclusion of the quarter$$s first month, Johnson reported the following costs:

Direct material $ $603,300$

Direct labor $185,000$

Variable production overhead $218,000$

Depreciation $33,000$

Supervisory salaries $43,300$

Other fixed production overhead $246,000$

Total $ $1,328,600$

Dave Kellerman and his crews turned out $26,000$ 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 financial 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 stern warning that performance must improve, and improve quickly, if Kellerman had any hopes of kee

$1.\backslash$table$[[,$Static Budget:,Variance,$],[$Direct material used,,,$],[$Direct labor,,,$],[$Variable production overhead,,,$],[$Other fixed production overhead,,,$],[,,,],[,,,],[$Total$,$$$,0,]]\backslash$table$[[,$Flexible Budget:,Variance,$],[,,,],[,,,],[,,,],[,,,],[,,,],[$Total$,,,],[,$$$,0,]]$Prepare a performance report that compares static budget and actual costs for the period just ended $($i$.$e$.,$ the report that Kellerman likely used when assessing his performance$).$

$2.$ 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$).$ping his job.