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

 

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Harvin Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attach case are $37, $8, and $10, respectively. The president is pleased with the following performance report: (Click the icon to view the performance report.) Actual output was 10,000 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 favorable (F) or unfavorable (U). (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 Data table - X Output units Direct materials Direct manufacturing labor Direct marketing labor Total direct costs Actual Costs Static Budget Variance Direct materials $ 384,800 $ Direct manufacturing labor 89,400 Direct marketing (distribution) labor 104,000 421,800 91,200 114,000 $37,000 F 1,800 F 10,000 F Print Done 13 Harvin Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attach case are $37, $8, and $10, respectively. The president is pleased with the following performance report: (Click the icon to view the performance report.) Actual output was 10,000 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 favorable (F) or unfavorable (U). (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 Data table - X Output units Direct materials Direct manufacturing labor Direct marketing labor Total direct costs Actual Costs Static Budget Variance Direct materials $ 384,800 $ Direct manufacturing labor 89,400 Direct marketing (distribution) labor 104,000 421,800 91,200 114,000 $37,000 F 1,800 F 10,000 F Print Done 13

Answer rating: 100% (QA)

The presidents pleasure is not justified based on the given information The actual results show that ... View the full answer