Suppose the static budget was for 2,500 units of output. Actual output was 2,000 units. The variances

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Suppose the static budget was for 2,500 units of output. Actual output was 2,000 units. The variances are shown in the following report:

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What are the price, efficiency, and sales-volume variances for direct materials and direct manufacturing labour? Based on your results, explain why the static budget was not achieved.

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Cost Accounting A Managerial Emphasis

ISBN: 978-0133392883

6th Canadian edition

Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ

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Question Posted: Jul 31, 2015 08:25 AM

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Suppose the static budget was for 2,500 units of output. Actual output was 2,000 units. The variances

Question:

Actual Results S18,870 8,820 Static Budget $25,000 12,500 Variance Direct materials Direct manufacturing labour $6,130 F 3,680 F

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A more detailed analysis underscores the fact that the world of variances may be divided into three ...View the full answer

Cost Accounting A Managerial Emphasis

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