Using Flexible Budgets

The following summary data are from a performance report for Hyland Company for May, during which $12,000$ units were produced. The budget reflects the company's normal capacity of $12,500$ units.

a$.$ Prepare a new performance report using flexible budgeting. Round all amounts to the nearest dollar.

b$.$ Which of the two performance reports should Hyland Company management use to measure

the company's operating efficiency in May?

The performance report that compares actual costs to standard budget costs.