Question

Complete the Production Department’s Flexible Budget Performance Report. (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. Round "rate per hour" answers to 2 decimal places.)

Answer 1

A flexible budget performance report compares the actual performance of a production department with the budgeted performance. It includes various variances such as sales volume, sales price, direct material usage, direct material price, direct labor efficiency, and direct labor rate.

Step-by-step explanation:

A flexible budget performance report is used to compare actual performance with the budgeted performance of a production department. It includes various variances such as the sales volume variance, the sales price variance, the direct material usage variance, the direct material price variance, the direct labor efficiency variance, and the direct labor rate variance.

For each variance, you need to calculate the difference between the actual and budgeted amounts, and indicate whether the variance is favorable (F), unfavorable (U), or none (no effect).