Figure 11-2. Lawson,Inc.produces plastic grocery bags.Lawson has developed a static budget for the month of July based on 8,000 direct labor hours.During the quarter,the actual activity was 9,000 direct labor hours.Data for July are summarized as follows:
Refer to Figure 11-2.Comparing the static budget to the actual costs,we can conclude that
A) the manager spent more than should have been spent.
B) immediate action is needed to reduce costs.
C) the plant manager was clearly not efficient.
D) the plant manager should be dismissed.
E) none of these.
Correct Answer:
Verified
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A)
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