The budgeted prices for materials and direct labour per unit of finished product are $11 and $5, respectively The production manager is delighted about the following data Is the managers happiness justified Prepare a report that might provide a more detailed explanation of why the static budget was...

The managers delight is unjustified A more informative analysis is obtained w ...

The budgeted prices for materials and direct labour per unit of finished product are $11 and $5,

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The budgeted prices for materials and direct labour per unit of finished product are $11 and $5, respectively. The production manager is delighted about the following data.

Static Budget Actual Costs $5,000 F Variance Direct materials $77,000 Direct labour $72,000 35,000 4,000 F 31,000

Is the manager’s happiness justified? Prepare a report that might provide a more detailed explanation of why the static budget was not achieved. Good output was 5,800 units.

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Management Accounting

ISBN: 978-0132570848

6th Canadian edition

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu

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Question Posted: Jul 05, 2019 09:58 AM

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The budgeted prices for materials and direct labour per unit of finished product are $11 and $5,

Question:

Static Budget Actual Costs $5,000 F Variance Direct materials $77,000 Direct labour $72,000 35,000 4,000 F 31,000

Step by Step Answer:

The managers delight is unjustified A more informative analysis is obtained w...View the full answer

Management Accounting

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