Rose Corporation provides you the following budgeted cost information for July, 2014.
|
Budgeted variable costs
|
Per unit
|
|
Direct materials
|
$5
|
|
Direct labor
|
$4
|
|
Overhead
|
$8
|
|
Budgeted fixed overhead
|
$90,000
|
The company has a normal capacity of producing 9,000 units. However, in July, the company produced 9,500 units by incurring the following costs.
|
Actual variable costs
|
Per unit
|
|
Direct materials
|
$57,000
|
|
Direct labor
|
$47,500
|
|
Overhead
|
$57,000
|
|
Actual fixed overhead
|
$85,000
|
Prepare a performance report for July, 2014, to compare the data from Rose's flexible budget with the actual costs incurred. Also find if costs are under or over budgeted.