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What is the meaningful total variance for performance evaluation purposes?

What is the meaningful total variance for performance evaluation purposes?

FINANCIAL ACCOUNTING
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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Zain company has a bottling plant for its drinks and has prepared flexible budgets: Flexible budgets Bottles: 15,000 18,000 22,000 Production costs: $ Materials 30,000 38,000 44,000 Labor 45,000 54,000 66,000 Overhead 25,000 25,000 25,000 Actual production was 19,500 bottles and the production costs incurred totalled $120,000. Instructions: What is the meaningful total variance for performance evaluation purposes?
Transcribed Image Text:Zain company has a bottling plant for its drinks and has prepared flexible budgets: Flexible budgets Bottles: 15,000 18,000 22,000 Production costs: $ Materials 30,000 38,000 44,000 Labor 45,000 54,000 66,000 Overhead 25,000 25,000 25,000 Actual production was 19,500 bottles and the production costs incurred totalled $120,000. Instructions: What is the meaningful total variance for performance evaluation purposes?
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