In Rooney Company, direct labor is $20 per hour. The company expects to operate S at 10,000 direct labor hours each month. In January 2017, direct labor totaling $206,000 b is incurred in working 10,400 hours. Prepare (a) a static budget report and (b) a flexible P budget report. Evaluate the usefulness of each repor.

Answer and Explanation:

The preparation is presented below;

a. For a static budget report

Product line      Budget                   Actual           Difference

Direct labor      $200,000              $206,000        $6,000 unfavorable

    (10,000 direct labor hours × $20 per hour)

It is unfavorable as the budget is less than the actual

b. For a flexible budget report

Product line      Budget                   Actual           Difference

Direct labor      $208,000              $206,000        $2,000 favorable

    (10,400 direct labor hours × $20 per hour)

It is favorable as the budget is more than the actual

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.