Question - The following overhead data are for a department of a large company.
|
Actual Costs Incurred
|
Static Budget
|
|
Activity level (in units)
|
500
|
450
|
|
|
|
|
Variable costs:
|
|
|
|
Indirect materials
|
$5,950
|
$5,382
|
|
Electricity
|
$1,112
|
$1,008
|
|
Fixed costs:
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|
|
|
Administration
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$2,770
|
$2,800
|
|
Rent
|
$5,120
|
$5,100
|
Required: Construct a flexible budget performance report that would be useful in assessing how well costs were controlled in this department.