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How should management calculate the activity

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    Assignment ID: FG133134357

    Question – Dudley Corporation finalized its annual operating budget for the year ended December 31, 2021 in November 2020. For the month of July 2021, the company budgeted direct materials in the amount of $80,000. Actual results amounted to $85,000. Does this mean that management did a poor job controlling costs? What other information may be relevant in answering this question? How should management calculate the activity and spending variances for the month of July 2021?

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