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DMC Inc. Company
Required:
1. Prepare a flexible budget for the first quarter of the fiscal year and compute flexible budget variances.
2. Estimate price and usage (or efficiency) variances for materials such as Reed and Handle, and labor cost. Estimate fixed overhead spending variance and volume variance. Indicate whether each variance is favorable (F) or unfavorable (U).
3. For which of the above variances, if any, should Ellen be held responsible? Should Alena rewrite the agreement with Ellen?
4. Prepare a memo to Alena, explaining the results of the first quarter and making recommendations to improve profitability for future periods.
Attachment:- DMC Company.rar
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