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Connor Company's budgeted costs for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per computer case are $40, $8 and $12 respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct Materials $364,000 $400,000 $36,000 F Direct Manufacturing Labor 78,000 80,000 2,000 F Direct Marketing (distribution) Labor 110,000 120,000 10,000 F Actual output was 8,800 cases. Assume all three cost items are variable. Is the president's pleasure justified? Prepare a revised flexible budget for 8,000, 8,800 and 10,000 cases using the framework posted on Canvas. Fixed Costs are budgeted to be $100,000 and actual Fixed Costs are $103,000. Resource Per Unit costs 8,000 8,800 10,000 Actual Costs

Connor Company's budgeted costs for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per computer case are $40, $8 and $12 respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct Materials $364,000 $400,000 $36,000 F Direct Manufacturing Labor 78,000 80,000 2,000 F Direct Marketing (distribution) Labor 110,000 120,000 10,000 F Actual output was 8,800 cases. Assume all three cost items are variable. Is the president's pleasure justified? Prepare a revised flexible budget for 8,000, 8,800 and 10,000 cases using the framework posted on Canvas. Fixed Costs are budgeted to be $100,000 and actual Fixed Costs are $103,000. Resource Per Unit costs 8,000 8,800 10,000 Actual Costs

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 48BEB: Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted...
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Connor Company's budgeted costs for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per computer case are $40, $8 and $12 respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct Materials $364,000 $400,000 $36,000 F Direct Manufacturing Labor 78,000 80,000 2,000 F Direct Marketing (distribution) Labor 110,000 120,000 10,000 F Actual output was 8,800 cases. Assume all three cost items are variable. Is the president's pleasure justified? Prepare a revised flexible budget for 8,000, 8,800 and 10,000 cases using the framework posted on Canvas. Fixed Costs are budgeted to be $100,000 and actual Fixed Costs are $103,000. Resource Per Unit costs 8,000 8,800 10,000 Actual Costs
Transcribed Image Text:Connor Company's budgeted costs for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per computer case are $40, $8 and $12 respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct Materials $364,000 $400,000 $36,000 F Direct Manufacturing Labor 78,000 80,000 2,000 F Direct Marketing (distribution) Labor 110,000 120,000 10,000 F Actual output was 8,800 cases. Assume all three cost items are variable. Is the president's pleasure justified? Prepare a revised flexible budget for 8,000, 8,800 and 10,000 cases using the framework posted on Canvas. Fixed Costs are budgeted to be $100,000 and actual Fixed Costs are $103,000. Resource Per Unit costs 8,000 8,800 10,000 Actual Costs
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