=+414 Chapter 10: Master budget and responsibility accounting M10_HORN3377_02_LT_C10.indd 414 2/09/13 3:46 PM Top management of Delmar

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=+414 Chapter 10: Master budget and responsibility accounting M10_HORN3377_02_LT_C10.indd 414 2/09/13 3:46 PM Top management of Delmar Ltd has decided to implement budget standards that will challenge the workers in each department, and it has asked Miller to design more challenging input standards for product Z. Miller provides top management with the following input quantities:

Input Budget quantity per unit of output Direct materials 3.95 kilograms Direct manufacturing labour 14.5 minutes Machine time 11.8 minutes Required Discuss the following:

1 Are these standards challenging standards for Department Z?

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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