Ronal Davis, superintendent of Mason Company Milling Department, is very happy with his performance report for the past month. The report follows:

\fQuestion 1 Mason Company Performance Report - Milling Department Static budgeted machine-hours Actual machine-machine hours Standard machine-hours allowed: 1) Actual units produced 2) Machine-hours per unit Standard machine-hours 35,000 30,000 Flexible Budget Overhead costs Variable costs: Indirect labour Utilities Supplies Maintenance Total variable cost Fixed costs: Maintenance Supervision Depreciation Total fixed cost Total overhead costs Cost formula per MH Actual costs incurred Static Budget 30,000 MHs Variance Standard MHs Total variance $ - $ (19,700) $ 0.60 $ 19,700 $ 21,000 $ 0.60 $ 19,700 $ 21,000 $ - $ - $ (19,700) $ - $ - $ $ 19,700 $ 21,000 $ - $ $ - $ $ (19,700) Variances U/F Spending Efficiency U/F U/F variance variance $ (19,700) $ - $ (19,700) $