Flexible Budgets and Performance Evaluation Presented is the January performance report for the Production Department of Nowwhat Company. NOWWHAT COMPANY Production Department Performance Report For Month of January Actual Static Budget Volume 50,000 46,000 Manufacturing costs: Direct materials $261,000 $248,400 Direct labor $236,000 $211,600 Variable overhead $144,000 $138,000 Fixed overhead $504,000 $500,000 Total $1,145,000 $1,098,000 REQUIRED a. Evaluate the performance report. The performance report Answer 1 compares the actual costs of manufacturing Answer 2 units with the budgeted costs of manufacturing Answer 3 units. The result is a series of Answer 4 variances for variable manufacturing costs. The actual variable costs of manufacturing Answer 5 units are expected to Answer 6 the budgeted variable costs for Answer 7 units. This is because variable costs change in proportion to changes in Answer 8 . b. Prepare a more appropriate performance report. Prior to developing such a budget, determine the standard variable costs per unit below. Budget Units Standard Unit Variable Cost Direct materials Answer 9 Answer 10 = Direct labor Answer 11 Answer 12 = Variable overhead Answer 13 Answer 14 = Note: enter all numbers as a positive number. NOWWHAT COMPANY Production Department Performance Report For the