The following overhead data are for a department in a large company. Activity level (in units) Variable costs: Supplies Electricity Fixed costs: Supervision Amortization Required: Actual costs incurred 480 $16,734 $1,026 $8,570 $5,780 Static budget 480 $16,944 $1,056 $8,600 $5,800 Prepare a report that would be useful in assessing how well costs were controlled in this department.

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyz…