Management Accounting
Management Accounting
6th Edition
ISBN: 9780137024971
Author: Robert S. Kaplan, Anthony A. Atk...
Publisher: Pearson College Div
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Chapter 3, Problem 61P

a.

To determine

State the qualitative factors that are relevant for the given decision.

b.

To determine

Describe whether it is advisable to outsource dessert production, if so explain the reason behind the decision.

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Ingram Production creates 4,500 units. Each unit was expected to require 2.2 labor hours at a cost of $14 per hour. Total labor cost was $143,850 for 10,200 hours worked. Direct labor is measured in labor hours. What is the flexible budget variance for direct labor?
Can you help me solve this general accounting question using the correct accounting procedures?
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Management Accounting

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