the velocity company uses flexible budgeting for cost control. Velocity made 15,300 units of products during...
the velocity company uses flexible budgeting for cost control. Velocity made 15,300 units of products during March, incurring indirect material costs of $18,000. Its master budget reflected indirect material costs of $480,000 at a production volume of 320,000 units. What was the flexible budget variance for the indirect material costs in March?
a. $3890 favorable
b. $4,660 unfavorable
c. $3,580 unfavorable
d. $4,950 favorable
Homework Answers
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Flexible budget variance for indirect materials cost = Actual - Flexible = 18,000 - (480,000/320,000)*15,300 = 18,000 - 22,950 = 4950 Favourable |
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