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.