Martinez Company estimates that it will produce $6,000$ units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $$7,$ direct labor $$11,$ and overhead $$17.$ Monthly budgeted fixed manufacturing overhead costs are $$8,200$ for depreciation and $$3,600$ for supervision.

In the current month, Martinez actually produced $6,500$ units and incurred the following costs: direct materials $$39,480,$ direct labor $$64,100,$ variable overhead $$110,772,$ depreciation $$8,200,$ and supervision $$3,816.$

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.$)$

MARTINEZ COMPANY

Static Budget Report

Difference

Favorable

Budget

Actual

Unfavorable