Bryant Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are $39, $6, and $11, respectively. The president is pleased with the following performance report: LOADING... (Click the icon to view the performance report.) Actual output was 10,000 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. Prepare a revised performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Results Output units Direct materials Direct manufacturing labor Direct marketing labor Total direct costs Flexible-Budget Flexible Variance Budget Sales-Volume Static Variance Budget Is the president's pleasure justified? The existing performance report is a ▼ Level 1 Level 2 analysis, based on a static budget. It makes ▼ an adjustment no adjustment for changes in output levels. The existing performance report shows a total direct cost variance of . The flexible-budget variance shows each direct cost category to have a(n) variance indicating efficient use of each direct cost item than was budgeted, or the use of direct cost items than was budgeted, or both. The revised performance report reveals that this variance is due to the ▼ decrease increase in output units from the amount budgeted. The president should analyze the ▼ efficiency variances price variances price and efficiency variances for each cost category to assist in identifying the causes. Choose from any list or enter any number in the input fields and then continue to the next question. Data Table Actual Costs Static Budget Variance Direct materials $399,300 $436,800 $37,500 F Direct manufacturing labor 65,600 67,200 1,600 F Direct marketing (distribution) labor 112,200 123,200 11,000 F

Bryant Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are $39, $6, and $11, respectively. The president is pleased with the following performance report: LOADING... (Click the icon to view the performance report.) Actual output was 10,000 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. Prepare a revised performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Results Output units Direct materials Direct manufacturing labor Direct marketing labor Total direct costs Flexible-Budget Flexible Variance Budget Sales-Volume Static Variance Budget Is the president's pleasure justified? The existing performance report is a ▼ Level 1 Level 2 analysis, based on a static budget. It makes ▼ an adjustment no adjustment for changes in output levels. The existing performance report shows a total direct cost variance of . The flexible-budget variance shows each direct cost category to have a(n) variance indicating efficient use of each direct cost item than was budgeted, or the use of direct cost items than was budgeted, or both. The revised performance report reveals that this variance is due to the ▼ decrease increase in output units from the amount budgeted. The president should analyze the ▼ efficiency variances price variances price and efficiency variances for each cost category to assist in identifying the causes. Choose from any list or enter any number in the input fields and then continue to the next question. Data Table Actual Costs Static Budget Variance Direct materials $399,300 $436,800 $37,500 F Direct manufacturing labor 65,600 67,200 1,600 F Direct marketing (distribution) labor 112,200 123,200 11,000 F

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 1MC: Flexible budgeting, performance measurement, and ethics Montevideo Manufacturing, Inc. produces a...

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Question

Bryant

Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are

$39,

$6,

and

$11,

respectively. The president is pleased with the following performance report:

(Click

the icon to view the performance report.)

Actual output was

10,000

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.

Prepare a revised performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.)

	Actual
	Results
Output units
Direct materials
Direct manufacturing labor
Direct marketing labor
Total direct costs

Flexible-Budget	Flexible
Variance	Budget

Sales-Volume	Static
Variance	Budget

Is the president's pleasure justified?

The existing performance report is a

▼

Level 1

Level 2

analysis, based on a static budget. It makes

▼

an adjustment

no adjustment

for changes in output levels.

The existing performance report shows a	total direct cost variance of	. The flexible-budget
variance shows each direct cost category to have a(n)	variance indicating	efficient use of each direct
cost item than was budgeted, or the use of	direct cost items than was budgeted, or both.

The revised performance report reveals that this variance is due to the

▼

decrease

increase

in output units from the amount budgeted. The president should analyze the

▼

efficiency variances

price variances

price and efficiency variances

for each cost category to assist in identifying the causes.

Choose from any list or enter any number in the input fields and then continue to the next question.

Data Table

	Actual Costs	Static Budget	Variance
Direct materials	$399,300	$436,800	$37,500 F
Direct manufacturing labor	65,600	67,200	1,600 F
Direct marketing (distribution) labor	112,200	123,200	11,000 F

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