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Figure 8-8
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below:
Rammazzotti Inc., had the following budgeted data:
Unit sales for 2016 26,000
Unit production for 2016 26,000
Budgeted fixed overhead for 2016:
Supervision $ 800
Depreciation 2,000
Rent 100
Budgeted variable costs per unit:
Direct materials $0.15
Direct labor 0.20
Supplies 0.02
Indirect labor 0.05
Power 0.02
The following actually occurred:
Actual unit sales for 2016 24,000
Actual unit production for 2016 28,000
Actual fixed overhead for 2016:
Supervision $ 850
Depreciation 2,000
Rent 100
Actual variable costs:
Direct materials $3,500
Direct labor 4,900
Supplies 530
Indirect labor 1,250
Power 470
-Refer to Figure 8-8. The flexible budget variance for total cost for 2016 is
DSM
Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as a guide to the diagnosis of mental disorders.
Diagnosis
The identification of the nature and cause of an illness or other problem by examination of the symptoms.
ADHD
Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by inattention, hyperactivity, and impulsivity.
DSM
The Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to diagnosing mental disorders.
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