Several years ago the Cookie Company developed a comprehensive budgeting system for prot planning and control purposes. The line supervisors have been very happy with the system and with the reports being prepared on their performance, but both middle and upper management have expressed considerable dissatisfaction with the information being generated by the system. The following is the overhead performance report for the Baking department. Cookie Company Overhead performance reportBaking department For the quarter ended June 30 Actual Budget Variance U or F Units 40,000 42,000 2,000 U Variable Overhead Indirect materials 35000 36000 1000 F Rework time 8400 8500 100 F Utilities 68000 69,000 1000 F Machine setup 17500 18000 500 F Totalvariable overhead cost 128900 131500 2600 F Fixed overhead Costs Maintenance 79500 80000 500 F Depreciation 10000 9800 200 U Inspection 60100 60000 100 U "otalxed overhead cost 149600 149800 200 F "otal overhead cost 278500 281300 2800 F 1. Revised flexible performance report. Cookie Company Overhead flexible performance report-Baking department For the quarter ended June 30 Actual Budget Variance U or F Units 40,000 40,000 Variable Overhead Indirect materials $ 35,000.00 $ 34,285.71 -714.29 U variable Rework time $ 8,400.00 $ 8,095.24 $ (304.76) u Indirect materials $ 0.86 Utilities $ 68,000.00 $ 65,714.29 $ (2,285.71) u Rework time 0.20 Machine setup $ 17,500.00 $ 17,142.86 $ (357.14) u Utilities 1.64 Total variable overhead cost $ 128,900.00 $ 125,238.10 $ (3,661.90) u Machine setup 0.43 $ 3.13 Fixed overhead Costs Maintenance $ 79,500.00 $ 80,000.00 $ 500.00 F Depreciation $ 10,000.00 $ 9,800.00 200.00 U Inspection $ 60, 100.00 $ 60,000.00 $ 100.00 U Total fixed overhead cost $ 149,600.00 $ 149,800.00 $ 200.00 F Total overhead cost $ 278,500.00 $ 275,038.10 $ (3,461.90) U