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7.17 Flexible budget. At Connor, the budgeted price of direct raw materials, direct production labor and direct marketing (distribution) work is $40, $8 and $12 per briefcase, respectively. The President is pleased with the data in the following performance report: Actual costs $ 364.000 Static budget $ 400.000 Deviation Direct raw materials Direct production work Direct marketing (distribution) work $ 36.000 F 2.000 F 10.000 F 78.000 80.000 110.000 120.000 Request Actual production was 8,800 briefcases. Is the President's satisfaction justified? Develop a revised performance report using a flexible budget and a static budget. Assume that all of the above direct costs are variable costs.

7.17 Flexible budget. At Connor, the budgeted price of direct raw materials, direct production labor and direct marketing (distribution) work is $40, $8 and $12 per briefcase, respectively. The President is pleased with the data in the following performance report: Actual costs $ 364.000 Static budget $ 400.000 Deviation Direct raw materials Direct production work Direct marketing (distribution) work $ 36.000 F 2.000 F 10.000 F 78.000 80.000 110.000 120.000 Request Actual production was 8,800 briefcases. Is the President's satisfaction justified? Develop a revised performance report using a flexible budget and a static budget. Assume that all of the above direct costs are variable 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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7.17 Flexible budget. At Connor, the budgeted price of direct raw materials, direct production labor and direct marketing (distribution) work is $40, $8 and $12 per briefcase, respectively. The President is pleased with the data in the following performance report: Static budget $ 400.000 Actual costs Deviation Direct raw materials Direct production work Direct marketing (distribution) work $ 364.000 $ 36.000 F 78.000 80.000 2.000 F 110.000 120.000 10.000 F Request Actual production was 8,800 briefcases. Is the President's satisfaction justified? Develop a revised performance report using a flexible budget and a static budget. Assume that all of the above direct costs are variable costs.
Transcribed Image Text:7.17 Flexible budget. At Connor, the budgeted price of direct raw materials, direct production labor and direct marketing (distribution) work is $40, $8 and $12 per briefcase, respectively. The President is pleased with the data in the following performance report: Static budget $ 400.000 Actual costs Deviation Direct raw materials Direct production work Direct marketing (distribution) work $ 364.000 $ 36.000 F 78.000 80.000 2.000 F 110.000 120.000 10.000 F Request Actual production was 8,800 briefcases. Is the President's satisfaction justified? Develop a revised performance report using a flexible budget and a static budget. Assume that all of the above direct costs are variable costs.
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