Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 8

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.