Rocky Mountain Manufacturing produces a single product. The original budget for November was based on expected production of 16,400 units; actual production for November was 14,596 units. The original budget and actual costs incurred for the manufacturing department follow:
Original Budget Actual Costs
Direct materials $ 246,000 $ 228,906
Direct labor 180,400 164,640
Variable overhead 116,440 99,297
Fixed overhead 84,300 85,512
Total $ 627,140 $ 578,355
Required:
Prepare an appropriate performance report for the manufacturing department. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations and round final answers to nearest whole dollar amount. Omit the “$” sign in your response.)
Item Original Budget
(16,400 units) Flexed Budget
(14,596 units) Actual Cost Variance
Direct Materials $ $ $ $
Direct Labor
Variable Overhead
Fixed Overhead
Total $ $ $ $
