Missoula, Inc &Nbsp;
Required:
A

Essay

Missoula, Inc., is looking for feedback on performance. The company compares the budget for the year with the actual costs.
Missoula, Inc., had the following budgeted data: $\begin{array}{ll}\text { Unit sales for } 2018 & 10,000 \\\text { Unit production for } 2018 & 10,000\\\\\text { Budgeted fixed overhead for } 2018 \text { : }\\\text { Supervision } & \$ 18,000 \\\text { Depreciation } & 20,000 \\\text { Rent } & 10,000\\\\\text { Budgeted variable costs per unit: } & \\\text { Direct materials } & \$ 18.00 \\\text { Direct labor } & 25.00 \\\text { Supplies } & 0.20 \\\text { Indirect labor } & 1.00 \\\text { Power } & 0.10\\\\\text { The following actually occurred: }\\\\\text { Actual unit sales for } 2018 & 11,000 \\\text { Actual unit production for } 2018 & 12,000\\\\\text { Actual fixed overhead for } 2018 \text { : }\\\text { Supervision } & \$ 17,850 \\\text { Depreciation } & 20,000 \\\text { Rent } & 10,000\\\\\text { Actual variable costs for 2018: } & \\\text { Direct materials } & \$ 214,000 \\\text { Direct labor } & 320,000 \\\text { Supplies } & 2,500 \\\text { Indirect labor } & 10,000 \\\text { Power } & 1,500\\\end{array}$
 
Required:
a.Prepare a performance report for all costs showing static budget variances.
b.Prepare a performance report for all costs showing flexible budget variances.