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Homework answers / question archive / Connor Company’s budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are $40, $8, and $12, respectively

Connor Company’s budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are $40, $8, and $12, respectively

Finance

Connor Company’s budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are $40, $8, and $12, respectively. The president is pleased with the following performance report:

Required:

Actual output was 8,800 attaché cases. Assume all three direct-cost items shown are variable costs.

Is the president’s pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget.

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