W 15 the TCAIUI Vuugu 11-2A. Using Flexible Budget exible Budgets The following summary data are from a performance report for Sterling "pany for May, during which 9.600 units were produced. The budget reflects the company's normal capacity of 10,000 units. Actual Costs (9,600 Units) Variances Direct material .... Direct labor........... Variable overhead .... Fixed overhead. $136,800 277,200 98,400 72,400 $584,800 Budget (10,000 Units) $140,000 280,000 96,000 72,000 $588,000 [$3,200 F] [2,800 F] 2,400 U 400 U [$3,200 F] Total ............. What is the general implication of the performance report? Why might Sterling question the significance of the report? b. Revise the performance report using flexible budgeting, and comment on the general implica- tion of the revised report. - . 04 211.24