Process Manufacturing Ltd has prepared the following fixed budget performance report for the production department’s financial results during the year ended 30 June 2025.

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Units of production Manufacturing costs: Direct materials Direct labour Factory overhead: PROCESS MANUFACTUING LTD Fixed budget performance report for the year ended 30 June 2025 Budget Actual Variance 144 000 126 000 18 000 U $ 648 000 504 000 $ 577 200 $70 800 F 430 560 73 440 F Variable costs: Indirect labour 36 000 32 760 3 240 F Supplies 57 600 54 600 3 000 F Repairs 43 200 28 080 15 120 F Total variable overhead 136 800 115 440 21 360 F Fixed costs: Depreciation Insurance Rent 127 200 127 440 240 U 4 800 5 840 1 040 U 12 000 12 000 Salaries Total fixed overhead Total factory overhead 16 800 17 280 480 U 160 800 162 560 297 600 Total manufacturing costs U indicates an unfavourable variance. F indicates a favourable variance. $ 1 449 600 278 000 $ 1 285 760 1 760 U 19 600 F $ 163 840 F