Dagmar Company provided the following information for last year.
Master Budget Actual Data
Budgeted production 3,000 ......... 2,900 units
Direct materials:
3 pounds @ 0.80 per pound ......... $6,900
Direct labor:
0.5 hr. @ $12.00 per hour .......... 17,340
Variable overhead:
0.5 hr. @ $1.50 .............. 2,200
Fixed overhead:
Materials handling, $6,200 ......... 6,300
Depreciation, $2,600 2,600

Required:
1. Calculate the budgeted amounts for each cost category listed above for the 3,000 budgeted units.
2. Prepare a performance report using a budget based on expected production.