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

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Beta Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per luxury wallet are $41, $5, and S11, respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct materials S373,500 $410,000 $36.500 F Direct manufacturing labor 48,600 50,000 1,400 F Direct marketing (distribution) 103,500 110,000 6,500 F labor Required: 1. Actual output was 9,000 huxury wallets. Assume all three direct-cost items shown are variable costs. Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. 2. Beta Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per luxury wallet are $41, $5, and S11, respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct materials S373,500 $410,000 $36.500 F Direct manufacturing labor 48,600 50,000 1,400 F Direct marketing (distribution) 103,500 110,000 6,500 F labor Required: 1. Actual output was 9,000 huxury wallets. Assume all three direct-cost items shown are variable costs. Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. 2.

Answer rating: 100% (QA)

The presidents pleasure is not justified since the static budge... View the full answer