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Question(s) / Instruction(s):

. Ranger Company produces men's shirts. The following budgeted and actual amounts are for 2010:

Cost

Budget at 2,500 units                      Actual Amounts at 2,900 units

Direct materials                                $55,000                                 $65,500

Direct labor                         70,000                                                   81,000

Fixed overhead                                35,000                                                   34,500

Instructions

1. Prepare a flexible budget for 2,900 units (actual level of production).

2. Prepare a performance report for Ranger Company for the year, comparing actual results with budgeted amounts for 2,900 units of production.

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