Instruction
Tanker Tech-Tethers produces an electronic dog collar. The annual budget for the collar production in the current year was:
Production and sales 4000 units 3900 units
Variable production costs $640,000 $631,800
Fixed production costs $480,000 $483,000
Prepare an end-of-year budget variance report using:
Static budgeting
Flexible budgeting
Which of the two budgetary approaches is better? Which best reflects the performance of the production manager? Explain your reasoning.
Your analysis should be at least 2 pages and follow proper APA format. Show your work for any calculations and cite any outside references used.