The manufacturing overhead budget for Birzeit Company contains the following items

The manufacturing overhead budget for Birzeit Company contains the following items.

Fixed Costs Variable Costs
   Depreciation expense    $ 30,000    Manufacturing supplies $ 12,000
   Supervision    34,000    Indirect Materials 44,000
   Insurance expense    4,000    Maintenance expense 20,000
   Inspection 2,000    Indirect labor 24,000
     Total Fixed Costs $ 70,000      Total Variable Costs $ 100,000

The budget was based on an estimated 4,000 units being produced. During the past month 3,000 units were produced, and the following costs incurred.

Fixed Costs Variable Costs
   Depreciation expense    $ 29,400    Manufacturing supplies $ 10,000
   Supervision    36,800    Indirect Materials 45,000
   Insurance expense    4,400    Maintenance expense 16,400
   Inspection 2,400    Indirect labor 27,000
     Total Fixed Costs $ 73,000      Total Variable Costs $ 98,400

Required
1. Determine which items would not be controllable by Farid, the production manager.
2. How much should have been spent during the month for the manufacture of the 3,000 units?
3. Prepare a flexible manufacturing overhead budget report for Mr. Farid.
4. Prepare responsibility (performance) report. Include only the costs that would have been controllable by Mr. Farid. Assume that the supervision cost above includes Mr. Farid’s salary of $20,000, both at budget and actual. In that same report describe clearly for Mr. Farid the areas in which his performance needs to be improved.