Question

Vaughn Manufacturing produced 290000 units in 135000 direct labor hours. Production for the period was estimated at 300000 units and 150000 direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at

Answer 1

Answer:

Actual level of activity which is 290,000 units

Explanation:

Although budgeted was 300,000 units, in order to understand the efficiency of labour in terms of the number of direct labour hours used, it must be flexed in order for it to be comparable.

for example they used only 135,000 units instead of budgeted which is 150,000 but although that is good, it does not tell us all the story, we will also consider the fact that they produced lesser quantities than planned which is 290,000 rather than 300,000.