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:

Pinion Cone Variation

Differences in the conical shape of a pinion gear that can affect meshing with other gears and impact the performance of a mechanical system.

Shim Pack Thickness

The combined thickness of a set of shims (thin pieces of material) used to adjust the spacing or clearance between components in machinery.

Differential Carrier

The drive axle assembly that houses the differential gearing.

Differential Pinion Gears

Small gears within the differential that engage with the larger ring gear to allow wheels on the same axle to rotate at different speeds.