Excel Applications for Accounting Principles 4th Edition by Gaylord Smith

Exercise 3

PROBLEM DATA
Reliable Smoke Alarms, Inc., has just completed an in-depth study of overhead costs. The firm normally operates between 3,600 and 4,600 labor hours each month. Budgeted costs for this range of activity are presented as follows:

REQUIREMENT
Comment on the differences between the static and flexible budget performance reports. Which budget is more useful in appraising the performance of the various persons charged with the responsibility for cost control Why