Review Problem 6.34 in your textbook. Using the questions provided as a guide, explain how you think the performance report presented may impact the company. Please review the posts of your classmates before responding to Problem 6.34; discuss three weaknesses that are different than what your classmates' posted, or provide a different explanation as to why the item poses a weakness.

To participate in follow up discussion, ask questions and post comments regarding classmates' posts, or respond to follow-up questions posted by the instructor.

Spitzer Specialty Furniture Bookcase Production Performance Report For the Month Ended June 30 Actual Budget Variance Units 3.000 2.500 500 F Sales Revenue $161,000 $137,500 $ 23,500 F Variable production expenses: Direct material 23,100 20,000 3.100 U Direct labor 18,300 15,000 3.300 U Overhead 60.200 51,250 8.950 U Fixed production expenses: Indirect labor 9.400 6.000 3.400 U Depreciation 5,500 5,500 Taxes 2,400 2,300 100 U Insurance 4.500 4,500 Administrative expense 12,000 9,000 3,000 U Marketing expense 8.300 7,000 1.300 U Research & development 6.000 4,500 1.500 U Operating income $ 11,300 $ 12,450 ($ 1,150 U)