(Click the icon to view the performance report) Actual outout was 9,200 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 budgetPrepare 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 favourable or unfavourable. (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.)
Jackson Company's budgeted prices for direct materials,direct manufacturing labour, and direct marketing (distribution) labour per attache case are $42,$9, and $11 respectively.The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct materials $ 416,100 $ 453.600 S 37.500 F
Direct manufacturing labour
95,600 107,300
97,200 118,800
1,600 F 11,500 F
Direct marketing(distribution) labour
Actual output was 9,400 attache 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 favourable or unfavourable.(For variances with a $o balance,make sure to enter"o" in the appropriate field. If the variance is zero,do not select a label.
Actual Results 9,400
Flexible-Budget Sales-Volume Variance Flexible Budget Variance Static Budget 9,400 1600 11000 S 416,100 $ 21,300 U 394,800 $ 58,800 F 453,600 95,600 11,000 U 84,600 12,600 F 97,200 107,300 3,900 U 103,400 15,400 F 118,800 $ 619,000 $ 36,200 U 582,800 $ 86,800 S 669,600
Output units
Direct materials
Direct manufacturing labour
Direct marketing labour
Total direct costs
