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Rose Corporation provides you the following budgeted cost information for July, 2014.
Budgeted variable costs
Per unit
Direct materials
$5
Direct labor
$4
Overhead
$8
Budgeted fixed overhead
$90,000
The company has a normal capacity of producing 9,000 units. However, in July, the company produced 9,500 units by incurring the following costs.
Actual variable costs
$57,000
$47,500
Actual fixed overhead
$85,000
Prepare a performance report for July, 2014, to compare the data from Rose's flexible budget with the actual costs incurred. Also find if costs are under or over budgeted.
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