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Western Manufacturing produces a single product. The original budget for April was based on expected production of 15,000 units; actual production for April was
Western Manufacturing produces a single product. The original budget for April was based on expected production of 15,000 units; actual production for April was 13,500 units. The original budget and actual costs incurred for the manufacturing department follow: Original Budget $ 232,500 192,000 Actual Costs $ 211,500 168,200 Direct materials Direct labor Variable overhead Fixed overhead Total $ 592,250 $ 537,000 96,750 71,000 82,300 75,000 Required: Prepare an appropriate performance report for the manufacturing department. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Item Original Budget (15,000 units) Flexed Budget Actual Cost Variance (13,500 units) Direct materials $ 232,500 $ 211,500 Direct labor 192,000 168,200 Variable overhead 96,750 82,300 Fixed overhead 71,000 75,000 Total $ 592,250 $ 537,000
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