The Performance Report for Clouse Company Showed the Flexible Budget

question 47

True/False

The performance report for Clouse Company showed the flexible budget for direct materials as $100,000 and actual direct materials as $86,000.This means there was a $14,000 unfavorable variance for the period.

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Definitions:

Marginal Utility

The change in overall satisfaction or utility obtained by consuming one additional unit of a good or service.

Total Utility

The total satisfaction received from consuming a particular quantity of goods and services.

Donuts

Circular or ring-shaped fried dough treats, often sweetened and sometimes filled or topped with various ingredients.

Burritos

A Mexican dish consisting of a flour tortilla wrapped or folded around a filling typically including beans, cheese, and meats.