It's important that managers understand how costs are reported on the company's financial statements. Review the financial data for Anthony's Orchards for the current year and compare the direct labor costs and direct materials to the previous year. Write a 1- to 2-page memo to senior management analyzing your findings and provide a recommendation for next year. What would you change based upon your analysis? To prepare for your memo, use data from the Anthony's Orchards website and compare and contrast the direct labor costs and direct materials.

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