Harvet company's budgeted prices for direct materials, direct manufacturing labor and direct marketing labor per attache case are $40, $8 and $12 respectively. The CEO is pleased with the following performance report: Part B Direct materials Direct man. Lab. Direct Mkt. costs Total direct costs Actual Cost 346,000 78,000 110,000 552,000 Static Budget 400,000 80,000 120,000 600,000 Variance ? 2,000 F 10,000 F 48,000 F Actual output equals 88% of the budgeted outputs. Required: Based on variance analysis of direct costs, prepare a revised performance report as per the relevant variance analysis equations.

Harvet company's budgeted prices for direct materials, direct manufacturing labor and direct marketing labor per attache case are $40, $8 and $12 respectively. The CEO is pleased with the following performance report: Part B Direct materials Direct man. Lab. Direct Mkt. costs Total direct costs Actual Cost 346,000 78,000 110,000 552,000 Static Budget 400,000 80,000 120,000 600,000 Variance ? 2,000 F 10,000 F 48,000 F Actual output equals 88% of the budgeted outputs. Required: Based on variance analysis of direct costs, prepare a revised performance report as per the relevant variance analysis equations.

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 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...

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