Question:
Flexible budgeting Rocky Mountain Manufacturing produces a single product.
The original budget for November was based on expected production of 35,000 units; actual production for November was 33,250 units. The original budget and actual costs incurred for the manufacturing department follow:
|
Original Budget
|
Actual Costs
|
|
Direct materials
|
$ 551,250
|
$ 541,500
|
|
Direct labor
|
427,000
|
413,500
|
|
Variable overhead
|
217,000
|
195,250
|
|
Fixed overhead
|
170,000
|
172,500
|
|
Total.
|
$1,365,250
|
$1,322,750
|
Required:
Prepare an appropriate performance report for the manufacturing department.