Question: 1. Jacomo Company's output for the current period was assigned a $300,000 standard direct materials cost. The direct materials variances included a $44,000 favorable price variance and a $6,000 favorable quantity variance. What is the actual total direct materials cost for the current period?
2. What is the predetermined standard overhead rate? How is it computed?
3. Identify the main purpose of a flexible budget for managers.
4. What type of analysis does a flexible budget performance report help management perform?