Reference no: EM132501849
The budgeted costs for Connor Company for direct materials, direct production labor and direct distribution labor are $50, $10 and $15, respectively. The vice-president is deeply satisfied with the following performance report:
Real Costs Master Static Budget Variation
Direct Materials $465,000 $600,000 $135,000 F
DL Production 95,000 120,000 25,000 F
DL Distribution 135,000 180,000 45,000 F
- The real number of units produced was 8,000.
QUESTION 1: Whats the performance evaluation report that uses a flexible and a static budget. Please assume that all the costs are variable. (The variance analysis detail is not required for this question).
QUESTION 2: Is the vice-president's satisfaction justified (answer after you complete part a.)?