Question

Harvin Company’s budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are $ 37, $ 9, and $ 13, respectively. The president is pleased with the following performance report:


Actual output was 9,800 attaché cases. Assume all three direct- cost items shown are variable costs.

Required
Is the president’s pleasure justified? Prepare a revised performance report that uses a flexible budget and a staticbudget.


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  • CreatedJanuary 15, 2015
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