Using Flexible Budgets

The following summary data are from a performance report for Hyland Company for May, during which $21,600$ units were produced. The budget reflects the company's normal capacity of $22,500$ units.

a$.$ Prepare a new performance report using flexible budgeting. Round all amounts to the nearest dollar.

b$.$ Which of the two performance reports should Hyland Company management use to measure the company's operating efficiency in May?

The performance report that compares actual costs to standard budget costs.

The performance report that compares actual costs to flexible budget costs.