Solution:
1.)
Actual costs incurred Actual input qty. × Actual Rate |
Actual input quantity × Budgeted rate |
Flexible Budget: Busgeted input quantity Allowed for Actual output × Budgeted rate |
Allocated: Budgeted input quantity allowed for actual output × Budgeted rate | |||
(4,540 × $15.50) | (4,540 × $15) | (3 × 1060 × $15) | (3 × 1060 × $15) | |||
$70,370 | $68,100 | $47,700 | $47,700 | |||
$2,270 UF Spending variance |
$20,400 UF Efficiency variance |
Never a variance | ||||
$22,670 UF Flexible budget variance |
Never a variance | |||||
* $15.50 = $70,370 ÷ 4,540
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