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.