O'Malley Inc

question 105

Essay

O'Malley Inc.manufacturers a unique product.Prior to the start of July,the company's controller estimated July's production to be 4000 units.Each unit requires one hour of direct labour at a cost of $10 per direct labour hour.
At the end of July,it was determined that actual production was 4680 units and actual direct labour cost was $49 140.
Required: A. Prepare a static budget for July.
B. Prepare a flexible budget for July.
C. Which type of budget should be compared to the actual direct labour cost for control purposes? Explain

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Definitions:

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The reply or action taken in answer to a request made.

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Information shared without the receiver's prior request, often perceived as unwanted or spam.

Customer's Claim

A statement made by a customer asserting a right to a refund, compensation, or remedy due to dissatisfaction with a product or service.

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The act of expressing regret or sorrow for one's actions, typically to seek forgiveness.