Boland Manufacturing prepared a 2019 budget for 120,000 units of product. Actual production in 2019 was 130,000 units. To be most useful, what amounts should a performance report for this company compare?

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To provide a meaningful comparison and accurately assess performance, it's important to compare actual results with a budget adjusted for the actual level of activity. Comparing the actual results for 130,000 units with a revised budget for the same number of units ensures that differences due to volume variances are eliminated, allowing for a focus on efficiency and price variances.

Boland Manufacturing Prepared a 2019 Budget for 120,000 Units of Product