=+14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500-case production volume rather than the planned 1,300 cases of production used in the budgets for parts (6) and (7)?

Chapter 23 Performance Evaluation Using Variances from Standard Costs 1083 Special Activities Michael McIntyre is a cost analyst with Mid-States Insurance Company. Mid-States is applying standards to its claims payment operation. Claims payment is a repetitive