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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The Answer of 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