Variable overhead costs:
Supplies $4 per yard
Machine maintenance $2 per yard
Chemicals $6 per yard
Fixed overhead costs
Salaries and wages $2,300 per month
Depreciation $800 per month
Utilities $400 per month
Rent $1,100 per month
In June, the following actual costs were incurred for 83 yards:
Machine maintenance $180
Salaries and wages $2,500
Construct a flexible budget performance report using the data provided. Show computations.
Flexible Budget Performance Report
Budgeted Actual Favorable/(Unfavorable) Variance
Number of yards 83 83 ...
This solution illustrates how to prepare a flexible budget performance report.