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Western Manufacturing produces a single product. The original budget for April was based on expected production of 10,000 units; actual production for April was
Western Manufacturing produces a single product. The original budget for April was based on expected production of 10,000 units; actual production for April was 8,000 units. The original budget and actual costs incurred for the manufacturing department follow: Direct materials Direct labor Variable overhead Fixed overhead Original Budget $ 150,000 123,000 62,000 Actual Costs. $ 126,500 102,000 55,600 68,500 70,000 $ 403,500 $354,100 Total 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 Direct materials Direct labor Variable overhead Fixed overhead Total Original Budget (10,000 units) Flexed Budget (8,000 units) 150,000 Actual Cost $ 126,500 Variance 123,000 62,000 102,000 55,600 68,500 $ 403,500 70,000 $ 354,100
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