Answer Happy

Problem 2 (33 points) Sore Saddles has prepared the performance report shown below. A production volume of 5,000 saddles was originally budgeted, as shown in the two "Budgeted Costs" columns. • However, the actual production achieved for the year was 6,000 saddles, and the "Actual Costs Incurred column is for this actual production of 6,000 saddles. Budgeted Costs Actual for 5,000 Units Costs Per Unit Total Incurred Difference Variable manufacturing costs: Direct materials $ 30.00 $ 150,000 $ 171,000 $ 21,000 Direct labor 48.00 240,000 261,500 21,500 Indirect labor 15.00 75,000 95,500 20,500 Supplies used 9.00 45,000 48,400 3,400 U Total variable $102.00 $ 510,000 $ 576,400 $ 66,400 U Fixed manufacturing costs: Rent $ 45,000 $45,000 $0 Supervisor salaries 120,000 120,000 Depreciation and other 75,000 75,000 Total fixed $ 240,000 $ 240,000 Total manufacturing costs $ 750,000 $ 816,400 $66,400 U ccccc U 0 $0 ola Please prepare a corrected flexible budget performance report.