The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours of ax monthly productive capacity:

The polishing department was operated for 4,600 hours during April and incurred the following manufacturing overhead costs:

Required
Using a flexible budgeting approach, prepare a performance report for the polishing department for April 2016, comparing actual overhead costs with budgeted overhead costs for 4,600 hours. Separate overhead costs into variable and fixed components and show the amounts of any variances between actual and budgeted amounts.

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Variable costs: Factory supplies. Indirect labor... Utilities (usage charge). TAYLOR MANUFACTURING COMPANY Polishing Department Overhead Budget (5,000 Hours) for the Month of April 2016 $100,000 152,000 68,000 296,000 Patent royalties on secret process. Total variable overhead... Fixed costs: Supervisory salaries Depreciation on factory equipment Factory taxes Factory insurance. Utilities (base charge). Total fixed overhead Total manufacturing overhead. $160,000 144,000 $ 616,000 48,000 32,000 80,000 $ 464,000 $1,080,000