Flexible budget companys budgeted prices for direct materials
| Actual Costs |
|
Variance | |
|---|---|---|---|
|
$373,500 | $36,500 F | |
| 48,600 | 50,000 | 1,400 F | |
| Direct marketing (distribution) labor | 103,500 | 110,000 | 6,500 F |
(15 min.) Flexible budget.
The existing performance report is a Level 1 analysis, based on a static budget. It makes no adjustment for changes in output levels. The budgeted output level is 10,000 units––direct materials of $410,000 in the static budget ÷ budgeted direct materials cost per luxury wallet of $41.
