Luxury Food Processing Company prepared the following budgeted amounts for the month of March 2023 based on 5,000 units of production:

Variable Cost of Production per unit:

Direct materials3 lbs. @ $2.75 per lb.

Direct Labor2.5 hours @$18.50 per hour

Variable Overhead2.5 hours @ $28.00 per hour

Fixed Overhead:

Material related$85,000

Depreciation on factory equipment$30,000

At the end of March, 5,500 units were produced with the following actual costs:

Direct Materials$50,500

Direct Labor$287,000

Variable Overhead$365,000

Fixed Overhead:

Materials related$82,450

Depreciation on factory equipment$30,000

Required:

A).Show a Static Budget for March 2023. [5 Marks]

B).Show a Performance Report using the budget and Actual level of production.[7 Marks]