Problem
Patrick Company manufactures a single product. The original budget for April was based on expected production of 12,000 units; actual production for April was 10,600 units. The original budget and actual costs for the manufacturing department are shown below:
|
Original Budget
|
Actual Costs
|
|
Direct Materials
|
$96,000
|
$90,500
|
|
Direct Labor
|
50,400
|
48,400
|
|
Variable Overhead
|
42,000
|
38,700
|
|
Fixed Overhead
|
84,000
|
82,000
|
|
Total
|
$272,400
|
$259,600
|
Prepare an appropriate performance report for the manufacturing department.