Problem 23.8A Flexible Budgeting (LO23-2, LO23-4, LO23-5, LO23-6) Braemar Saddlery uses department budgets and performance reports in planning and controlling its manufacturing operations. The following annual performance report for the custom saddle production department was presented to the president of the company Budgeted Costs for 5 0ee Units ActualOver Costs (nder) Per Unit TotalIncunnedBudget Variable manufacturing costs: Direct materials Direct labor Indirect labor Indirect materials, supplies, etc. $ 30.00 % 150,eee s 171,000 $. 21,000 261,58021,589 95, 580,50e 3,406 $ 182 ee S 510,806576,406 66,480 246 800 75,890 45.890 15 00 9.0e 48,400 Total variable manufacturing costs Fixed manufacturing costs: Lease rental Salaries of foremen Depreciation and other s 9.00 45,900 45,000 se 125,0005,eee 3,600 48 e0 $ 24e eae iliis 248 60o8. 600 120,808 75 8e 15.88 Total fixed manufacturing costs s Total manufacturing costs 158.00 $ 75e,800 825,000 ough a production volume of 5,000 saddles was originally budgeted for the year the actual volume of production achieved for the year was 6,000 saddles. Direct materials and direct labor are charged to production at actual cost. Factory overhead is applied to production at the predetermined rate of 150 percent of the actual direct labor cost. After a quick glance at the performance report showing an unfavorable manufacturing cost variance of $75.000, the president said to the accountant "Fix this thing so it makes sense. It looks as though our exceeded our budgeted production schedule by a significant margn. I want this performance report to show a better picture of our ability to control costs. n people really blew the budget r that we Required: o. Prepare a revised performance report for the year on a flexible bud get basis. Use the same format as the production report above but revise the budgeted cost figures to reflect the actual production level of 6,000 saddles c. What is the amount of over- or underapplied manufacturing overhead for the year? Required A Required C Prepare a revised performance report for the year on a flexible budget basis. Use the same format as the production report above, but revise the budgeted cost figures to reflect the actual production level of 6,000 saddles. ("Under Budget" should be indicated with a minus sign. Round your per unlt answers to 2 decimal places.) BRAEMAR SADDLERY Performance Report for Custom Saddle Production Dept For the Year Ended December 31 Budgeted Costs for 6,000 Units Actual Costs Incurred Under) Budget Per Unit Total Variable manuftacturing costs Total variable manufacturing costs 0.00 s Fixed manufacturing costs Total fixed manufacturing costs 0.00 S Required A Required C What is the amount of over- or underapplied manufacturing overhead for the year? (Note that a standard cost system is not used.) uired A Overapplied manufacturing overhead Underapplied manufacturing overhead