Question

Connor ​Company's budgeted prices for direct​ materials, direct manufacturing​ labor, and direct marketing​ (distribution) labor per​ attaché 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 comma 800 ​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.

Answer 1

Answer:

The answer is attached.

Explanation:

All the calculations were made based on the data provided by the exercise. It was a little difficul to rebuild the table, but with a little bit of research was possible. If any question, please no doubt to contact me.

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