Using Flexible Budgets

The following summary data are from a performance report for Hyland Company for May, during which 24,000 units were produced. The budget reflects the companys normal capacity of 25,000 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?

\begin{tabular}{|c|c|c|c|c|c|c|} \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{c} Actual \\ Costs \end{tabular}}} & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} Flexible \\ Budget \end{tabular}}} & \multicolumn{2}{|l|}{ Variance } \\ \hline & & & & & s & Type \\ \hline Direct material & $ & & $ & & $ & \\ \hline Direct labor & & & & & & \\ \hline Variable overhead & & & & & & \\ \hline Fixed overhead & & & & & & \\ \hline Totals & $ & 0 & $ & 0 & 0 & \\ \hline \end{tabular}