LAccessorio, an Italian manufacturer of leather belts, budgeted prices for direct materials, direct manufacturing labor, and direct
Question:
L’Accessorio, an Italian manufacturer of leather belts, budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per luxury belt—€41, €5, and
€11, respectively. The president is pleased with the following performance report:
Actual output was 9,000 luxury wallets. Assume all three direct-cost items shown are variable costs.
Required
Is the president’s optimism justified? Prepare a revised performance report that uses a flexible budget and a static budget.
Transcribed Image Text:
Direct materials Direct manufacturing labor Direct marketing (distribution) labor Actual Costs €373,500 48,600 103,500 Static Budget €410,000 50,000 110,000 Variance €36,500 F 1,400 F 6,500 F
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Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan
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