Problem:
Flexible budget. Conner Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attachA? case are $40, $8, and $12, respectively. The president is pleased with the following performance report:
Actual output was 8,800 attachA? cases. Assume all three direct-cost items above are variable costs.
Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a staticbudget.
