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Problem
Patrick Company manufactures a single product. The original budget for April was based on expected production of 12,000 units; actual production for April was 10,600 units. The original budget and actual costs for the manufacturing department are shown below:
Original Budget
Actual Costs
Direct Materials
$96,000
$90,500
Direct Labor
50,400
48,400
Variable Overhead
42,000
38,700
Fixed Overhead
84,000
82,000
Total
$272,400
$259,600
Prepare an appropriate performance report for the manufacturing department.
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Overhead Cost Pools Activity Cost Drivers Drivers
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