Sundazzler Designs has prepared the annual manufacturing budget for its line of specialty pergolas. It estimated annual production of 3,000 pergolas during 2022. Each pergola will require 54 pounds of lumber and one metal kit (which includes attachments and decorative embellishments.). The lumber used in these pergolas costs $1.50 per pound, and the metal kits cost $170 each. Each pergola will use two kinds of labor2 hours of type I labor from people who run the cutting saws and finishing tools, and 3 hours of work from type II workers who attach the metal reinforcements and other hardware. The type I employees are paid $15 per hour, and the type II are paid $12 per hour.

The Manufacturing Overhead budget is listed below:

Variable costs
Indirect materials	$42,000
Manufacturing supplies	58,800
Maintenance and utilities	72,000
Total variable MOH:	172,800
Fixed costs
Supervision	60,000
Insurance	16,000
Depreciation	132,000
Total fixed MOH:	208,000
Total	$380,800

During the first quarter, ended March 31, 2022, 900 units were actually produced with the following costs.

Lumber	$77,200
Metal kits	155,000
Type I labor	31,500
Type II labor	35,400
Indirect materials	13,380
Manufacturing supplies	18,200
Maintenance and utilities	19,700
Supervision	15,450
Insurance	3,700
Depreciation	33,000
Total	$402,530

Requirement 3

Assuming that the pergola line is treated as a cost center, prepare a flexible budget report (where you compare actual to budgeted amounts and determine whether it is F or U) for manufacturing for the quarter ended March 31, 2022, assuming 900 units were actually produced. Round all budgeted amounts to the nearest dollar.