Avery Company's budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per...
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Avery Company's budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per attach case are $37, $7, and $12, respectively. The president is pleased with the following performance report Actual Costs Static Budget Variance Direct materials Direct manufacturing labour Direct marketing (distribution) labour $ 333,000 $ 67,000 109,000 370,000 $ 37,000 F 70,000 3,000 F 120,000 11,000 F Actual output was 8,600 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 favourable or unfavourable. (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 Flexible-Budget Variance Flexible Budget Sales-Volume Variance Static Budget Output units Direct materials Direct manufacturing labour Direct marketing labour Total direct costs Is the president's pleasure justified? The existing performance report is a analysis, based on a static budget. It makes for changes in output levels. The existing performance report shows a amount budgeted. The president should analyze the total direct cost variance of $ The revised performance report reveals that this variance is due to the for each cost category to assist in identifying the causes. in output units from the Avery Company's budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per attach case are $37, $7, and $12, respectively. The president is pleased with the following performance report Actual Costs Static Budget Variance Direct materials Direct manufacturing labour Direct marketing (distribution) labour $ 333,000 $ 67,000 109,000 370,000 $ 37,000 F 70,000 3,000 F 120,000 11,000 F Actual output was 8,600 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 favourable or unfavourable. (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 Flexible-Budget Variance Flexible Budget Sales-Volume Variance Static Budget Output units Direct materials Direct manufacturing labour Direct marketing labour Total direct costs Is the president's pleasure justified? The existing performance report is a analysis, based on a static budget. It makes for changes in output levels. The existing performance report shows a amount budgeted. The president should analyze the total direct cost variance of $ The revised performance report reveals that this variance is due to the for each cost category to assist in identifying the causes. in output units from the
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Answer To determine if the presidents pleasure is justified we need to prepare a revised performance ... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
Posted Date:
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