The following budget for the 60,000-unit product level was prepared for the Production Department for September:
During September, the Production Department actually produced 70,000 units at a total manufacturing cost of $210,000.
-Refer to the above data. A performance report prepared for September operations under a flexible budget approach would show:

Question

The following budget for the 60,000-unit product level was prepared for the Production Department for September:
  During September, the Production Department actually produced 70,000 units at a total manufacturing cost of $210,000.
-Refer to the above data. A performance report prepared for September operations under a flexible budget approach would show:

Quizplus · Accepted Answer

Actual costs are $208,500 and the flexible budget is $215,000, so actual costs are under budget by $6,500.

The Following Budget for the 60,000-Unit Product Level Was Prepared