Part 1 Read the “Widget Company Performance Report” document, provided with this Assessment. Imagine that you are the manager of the production department at the Widget Company and you have been asked

Widget Company

Manufacturing Overhead Performance Report

For Month Ended June 20XX

Static Budget at 6,000 units

Actual

Variance (Actual—Static Budget)

Flexible Budget at 6,500 units

Variance (Actual—Flexible Budget)

Revenue

$ 60,000

$ 63,240

$ 3,240

F

$ 65,000

$ (1,760)

Less:

Variable costs

27,000

31,200

4,200

U

29,250

1,950

Contribution Margin

$ 33,000

$ 32,040

$ (960)

U

$ 35,750

$ (3,710)

Less:

Fixed costs

24,000

25,000

1,000

U

24,000

1,000

Profit

$ 9,000

$ 7,040

$ (1,960)

U

$ 11,750

$ (4,710)