(SOLVED) The budgeted prices for direct materials direct manufacturing labour and


Question Description:

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The budgeted prices for direct materials, direct manufacturing labour and direct marketing (distribution) labour per attaché case are €40, €8 and €12, respectively. The chairman is pleased with the following performance report:
Required
Actual output was 8800 attaché cases. Is the chairman’s pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. Assume all three direct costs items are variable costs.

Answer

$19