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Western Manufacturing produces a single product. The original budget for April was based on expected production of 17,500 units: actual production for April was
Western Manufacturing produces a single product. The original budget for April was based on expected production of 17,500 units: actual production for April was 16,600 units. The original budget and actual costs incurred for the manufacturing department follow: Direct materials Direct labor Variable overhead Fixed overhead Total Required: Original Budget Actual Costs $ 275,625 $270,750 206,750 97,625 213,500 107,625 85,000 $ 681,750 $661,375 86,250 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 Flexed Budget (17,500 units) Actual Cost Variance Direct materials $ (16,600 units) 275,625 $ 9,300 $270,750 Direct labor 213,500 206,750 Variable overhead Fixed overhead Total 107,625 97,625 85,000 86,250 $ 681,750 $ 9,300 $661,375)
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