Bryant Company's budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per attaché case are $41, $9, and $14, respectively. The president is pleased with the following performance report: Actual Costs Static Budget Direct materials Direct manufacturing labour Direct marketing (distribution) labour $ 407,800 $ 95,000 141,200 Variance 442,800 $ 35,000 F 97,200 151,200 2,200 F 10,000 F Actual output was 9,400 attaché cases. Assume all three direct-cost items above are variable costs. Requirement Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. Prepare a revised performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favourable or unfavourable. (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Output units Direct materials Direct manufacturing labour Direct marketing labour Total direct costs Actual Results Flexible-Budget Variance Flexible Budget Sales-Volume Variance Static Budget
Bryant Company's budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per attaché case are $41, $9, and $14, respectively. The president is pleased with the following performance report: Actual Costs Static Budget Direct materials Direct manufacturing labour Direct marketing (distribution) labour $ 407,800 $ 95,000 141,200 Variance 442,800 $ 35,000 F 97,200 151,200 2,200 F 10,000 F Actual output was 9,400 attaché cases. Assume all three direct-cost items above are variable costs. Requirement Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. Prepare a revised performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favourable or unfavourable. (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Output units Direct materials Direct manufacturing labour Direct marketing labour Total direct costs Actual Results Flexible-Budget Variance Flexible Budget Sales-Volume Variance Static Budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bryant Company's budgeted prices for direct materials, direct manufacturing labour, and direct
marketing (distribution) labour per attaché case are $41, $9, and $14, respectively. The president is pleased with
the following performance report:
Actual Costs Static Budget
Direct materials
Direct manufacturing labour
Direct marketing (distribution) labour
$
407,800 $
95,000
141,200
Variance
442,800 $ 35,000 F
97,200
2,200 F
151,200
10,000 F
Actual output was 9,400 attaché cases. Assume all three direct-cost items above are variable costs.
Requirement
Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static
budget.
Prepare a revised performance report that uses a flexible budget and a static budget. Begin with the actual results,
then complete the flexible budget columns and the static budget columns. Label each variance as favourable or
unfavourable. (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance
is zero, do not select a label.)
Output units
Direct materials
Direct manufacturing labour
Direct marketing labour
Total direct costs
Actual
Results
Flexible-Budget
Variance
Flexible
Budget
Sales-Volume
Variance
Static
Budget
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