Mussatto Company expects to produce 50,000 units of product IOA during the current year. Budgeted variable manufacturing costs per unit are direct materials $7, direct labor $13, and overhead $18. Annual budgeted fixed manufacturing overhead costs are $96,000 for depreciation and $45,600 for supervision.
In the current month, Mussatto produced 6,000 units and incurred the following costs: direct materials $38,850, direct labor $76,440, variable overhead $116,640, depreciation $8,000 and supervision $4,000.
Prepare a flexible budget report. (Note: You do not need to prepare the heading.) Were costs controlled?