Johnson Electrical produces industrial ventilation fans. The company plans to manufacture $90,000$ fans evenly over the next quarter at

the following costs: direct materlal, $$1,800,000$; direct labor, $$540,000$; varlable productlon overhead, $$544,500$; and fixed production

overhead, $$936,000.$ The $$936,000$ amount includes $$93,000$ of straight$-$Ine depreclation and $$108,000$ of supervisory salarles.

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

Dave Kellerman and his crews turned out $26,000$ fans during the month$-$a remarkable feat glven that the firm's manufacturing plant

was closed for several days because of storm damage and flooding. Kellerman was especlally pleased with the fact that overall

financlal performance for the perlod was favorable when compared with the budget. HIs pleasure, however, was very short$-$Ived, as

Johnson's general manager Issued a stern warning that performance must Improve, and Improve qulckly, if Kellerman had any hopes

of keeping his job.

Required:

Prepare a performance report that compares flexible budget and actual costs for the perlod just ended $($l$.$e$.,$ the report that the

general manager likely used when assessing Kellerman's performance$).$

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Req $2$

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Req $5A$

Req $5$B

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$).$

Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable", Select "None" and enter $"0"$ for no effect

$($i$.$e$.,$ zero variance$).$ Do not round intermediate calculations.