Figure 11-1. Jason,Inc.produces leather purses.Jason has developed a static budget for the first quarter,based on 20,000 direct labor hours.During the quarter,the actual activity was 22,000 direct labor hours.Data for the first quarter are summarized as follows:
Refer to Figure 11-1.Comparing the static budget to the actual outcomes,we can say the following:
A)the manager had more direct labor hours.
B)the variances are all unfavorable.
C)the comparison is not useful for assessing managerial efficiency.
D)a flexible budget should be used for assessing efficiency.
E)all of these.

Question

Figure 11-1. Jason,Inc.produces leather purses.Jason has developed a static budget for the first quarter,based on 20,000 direct labor hours.During the quarter,the actual activity was 22,000 direct labor hours.Data for the first quarter are summarized as follows:
 Refer to Figure 11-1.Comparing the static budget to the actual outcomes,we can say the following:
A)the manager had more direct labor hours. 
B)the variances are all unfavorable. 
C)the comparison is not useful for assessing managerial efficiency. 
D)a flexible budget should be used for assessing efficiency. 
E)all of these.

Quizplus · Accepted Answer

The Answer of Figure 11-1. Jason,Inc.produces leather purses.Jason has developed a static budget for the first quarter,based on 20,000 direct labor hours.During the quarter,the actual activity was 22,000 direct labor hours.Data for the first quarter are summarized as follows:
 Refer to Figure 11-1.Comparing the static budget to the actual outcomes,we can say the following:
A)the manager had more direct labor hours. 
B)the variances are all unfavorable. 
C)the comparison is not useful for assessing managerial efficiency. 
D)a flexible budget should be used for assessing efficiency. 
E)all of these.