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Johnson Electrical produces industrial ventllation fans. The company plans to manufacture 9 0 , 0 0 0 fans evenly over the next quarter at the
Johnson Electrical produces industrial ventllation fans. The company plans to manufacture fans evenly over the next quarter at the following costs: direct materlal, $; direct labor, $; varlable productlon overhead, $; and fixed production overhead, $ The $ amount includes $ of straightline depreclation and $ of supervisory salarles. Shortly after the concluslon of the quarter's first month, Johnson reported the following costs: Dave Kellerman and his crews turned out fans during the montha remarkable feat glven that the firm's manufacturling plant was closed for several days because of storm damage and flooding. Kellerman was especlally pleased with the fact that overall financlal performance for the perlod was favorable when compared with the budget. His pleasure, however, was very shortIved, as Johnson's general manager Issued a stern warnIng that performance must Improve, and Improve qulckly, if Kellerman had any hopes of keeping his job. Required: Explain the difference between a statlc budget and a flexible budget. Which of the two budgets would be more useful when planning the company's cash needs over a range of activity? Prepare a performance report that compares static budget and actual costs for the perlod Just ended le the report that Kellerman Iikely used when assessing his performance Prepare a performance report that compares flexible budget and actual costs for the perlod just ended le the report that the general manager Ilkely used when assessing Kellerman's performance a Which of the following two reports is preferred? b Which of the following statements is false? Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a performance report that compares static budget and actual costs for the period just ended ie the report that Kellerman likely used when assessing his performance Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter for no effect ie zero variance Do not round intermediate calculations.
Johnson Electrical produces industrial ventllation fans. The company plans to manufacture fans evenly over the next quarter at
the following costs: direct materlal, $; direct labor, $; varlable productlon overhead, $; and fixed production
overhead, $ The $ amount includes $ of straightline depreclation and $ of supervisory salarles.
Shortly after the concluslon of the quarter's first month, Johnson reported the following costs:
Dave Kellerman and his crews turned out fans during the montha remarkable feat glven that the firm's manufacturling plant
was closed for several days because of storm damage and flooding. Kellerman was especlally pleased with the fact that overall
financlal performance for the perlod was favorable when compared with the budget. His pleasure, however, was very shortIved, as
Johnson's general manager Issued a stern warnIng that performance must Improve, and Improve qulckly, if Kellerman had any hopes
of keeping his job.
Required:
Explain the difference between a statlc budget and a flexible budget.
Which of the two budgets would be more useful when planning the company's cash needs over a range of activity?
Prepare a performance report that compares static budget and actual costs for the perlod Just ended le the report that Kellerman
Iikely used when assessing his performance
Prepare a performance report that compares flexible budget and actual costs for the perlod just ended le the report that the
general manager Ilkely used when assessing Kellerman's performance
a Which of the following two reports is preferred?
b Which of the following statements is false?
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Prepare a performance report that compares static budget and actual costs for the period just ended ie the report that
Kellerman likely used when assessing his performance
Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter for no effect
ie zero variance Do not round intermediate calculations.
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