Hadrian Power manufactures small power supplies for car stereo systems. The company uses flexible budgeting techniques in order to deal with the seasonal and cyclical nature of the business. The accounting department provided the following data on budgeted manufacturing costs for the month of September in 2016:

In September 2016, actual operations are summarized as follows:

a. Prepare a report comparing the actual operating results to the flexible budget.

b. Write a short memorandum summarizing the report prepared in part

(a) above.
What likely managerial implications do you draw from this report? (What are the numbers telling you?)

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Hadrian Power Planned Level of Production for Budgeted production (in units) Variable costs (vary with production) Direct materials Direct labor Indirect labor Indirect materials Maintenance Fixed costs Supervision Other (depreciation, taxes, etc.) Total plant costs September 2016 14,000 $140,000 224,000 21,000 10,500 6,300 24,700 83,500 $510,000