Reference no: EM13940467
1. Charles Corporation has three divisions -marketing, production, and personnel. There is a manager in charge of each division. The flexible budgets for each division follow.
Marketing
Production
Personnel
Manager
Manager
Manager
Controllable costs:
Direct material
$10,000
Direct labor
25,000
Salaries
$40,000
$35,000
Supplies
10,000
3,000
2,000
Maintenance
1,000
2,000
1,000
Total
$5 1,000
$40,000
$38,000
Actual costs by division were:
Controllable costs:
Direct material
$12,000
Direct labor
24,000
Salaries
$5 1,000
$34,000
Supplies
800
2,000
1,500
200
1,500
500
Total
$52,000
$39,500
$36,000
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