Question - Ranger Company produces men's shirts. The following budgeted and actual amounts are for 2010:
Cost Budget at 2,500 units Actual Amounts at 2,900 units
Direct materials $55,000 $65,500
Direct labor 70,000 81,000
Fixed overhead 35,000 34,500
Instructions
1. Prepare a flexible budget for 2,900 units (actual level of production).
2. Prepare a performance report for Ranger Company for the year, comparing actual results with budgeted amounts for 2,900 units of production.