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:
|
|
|
|
Administration
|
$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.