Abu Dhabi Company's budgeted prices for direct materials, direct manufacturing labor,and direct marketing labor per case are $40, $8, and $12 respectively. The ManagingDirector of the The company is quite satisfied with the following performance report:out ofActual CostStatic BudgetVariancequestionDirect materials$364,000400,00036,000 FDirect manufacturing labor78,00080,0002.000 FDirect marketing labor110,000120,00010,000 FRequired:Based on the flexible budget analysis, provide justification on the Managing Directorsatisfaction on performance Give documented analysis

Flexible budgets are forecasts or estimates that changes with change in level of activity or…

Abu Dhabi Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing labor per case are $40, $8, and $12 respectively The Managing Director of the The company is quite satisfied with the following performance report: Actual Cost Static Budget Variance Direct materials $364,000 400,000 36.000 F Direct manufacturing labor 78,000 80,000 2.000 F Direct marketing labor 110,000 120,000 10,000 F Required: Based on the flexible budget analysis, provide justification on the Managing Director satisfaction on performance Grve documented analysis.

Abu Dhabi Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing labor per case are $40, $8, and $12 respectively The Managing Director of the The company is quite satisfied with the following performance report: Actual Cost Static Budget Variance Direct materials $364,000 400,000 36.000 F Direct manufacturing labor 78,000 80,000 2.000 F Direct marketing labor 110,000 120,000 10,000 F Required: Based on the flexible budget analysis, provide justification on the Managing Director satisfaction on performance Grve documented analysis.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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