Novak Company estimates that it will produce $7,000$ units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $$6,$ direct labor $$12,$ and overhead $$17.$ Monthly budgeted fixed manufacturing overhead costs are $$8,000$ for depreciation and $$4,000$ for supervision.

In the current month, Novak actually produced $7,500$ units and incurred the following costs: direct materials $$38,808,$ direct labor $$82,100,$ variable overhead $$127,806,$ depreciation $$8,000,$ and supervision $$4,200.$

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.$)$

Were costs controlled?

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