Bennett Company's budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per...

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Bennett Company's budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per attach case are $39, $6, and $15, respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct materials Direct manufacturing labour Direct marketing (distribution) labour $ 375,500 $ 60,200 145,500 409,500 $ 34,000 F 63,000 2,800 F 157,500 12,000 F Actual output was 9,300 attach cases. Assume all three direct-cost items above are variable costs. Requirement Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. Prepare a revised performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favourable or unfavourable. (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Results Flexible-Budget Variance Flexible Budget Sales-Volume Variance Static Budget Output units Direct materials Direct manufacturing labour Direct marketing labour Total direct costs Bennett Company's budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per attach case are $39, $6, and $15, respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct materials Direct manufacturing labour Direct marketing (distribution) labour $ 375,500 $ 60,200 145,500 409,500 $ 34,000 F 63,000 2,800 F 157,500 12,000 F Actual output was 9,300 attach cases. Assume all three direct-cost items above are variable costs. Requirement Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. Prepare a revised performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favourable or unfavourable. (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Results Flexible-Budget Variance Flexible Budget Sales-Volume Variance Static Budget Output units Direct materials Direct manufacturing labour Direct marketing labour Total direct costs

Answer rating: 100% (QA)

To determine if the presidents pleasure is justified and to prepare a revised performance report we need to calculate the flexiblebudget variance and ... View the full answer