The cost formula for the maintenance department of Rambo Ltd. is $9,700 per month plus $3.85 per machine hour used by the production department.

Required:
a. Calculate the maintenance cost that would be budgeted for a month in which 13,400 machine hours are planned to be used.
b. Prepare an appropriate performance report for the maintenance department assuming that 14,120 machine hours were actually used in the month of June and that the total maintenance cost incurred was $66,840.