Question

Polly's Pizza Manufacturing prepared the a flexible budget for last month. Some of the variance analyses...

Polly's Pizza Manufacturing prepared the a flexible budget for last month. Some of the variance analyses are reported below. "F" denotes a favorable variance and "U" denotes an unfavorable variance.

                         Flexible   Variances
                          Budget     Price     Efficiency

Direct labor         7,500    112U      750F

The actual amount spent for direct manufacturing labor was:

Question 20 options:

a)

$6,638

b)

$ 8,128

c)

$8,362

d)

$6,862

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Answer #1

Amount spent for direct manufacturing labor

= 7500 + 112 - 750

= 6862

Option D is the answer

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