Ally Mfg. uses a standard cost system and its July production of 1,770 units inv

Question

Ally Mfg. uses a standard cost system and its July production of 1,770 units involved actual direct labor costs of $241,500 for 5,470 hours worked. The budget for July called for production of 2,000 units with 5,900 direct labor hours at $39.00 per hour. Ally's flexible budget variance for July is: A) $37,862 unfavorable B) $29,170 unfavorable C) $10,692 unfavorable D) $9,692 unfavorable E) $28,170 unfavorable Ally Mfg. uses a standard cost system and its July production of 1,770 units involved actual direct labor costs of $241,500 for 5,470 hours worked. The budget for July called for production of 2,000 units with 5,900 direct labor hours at $39.00 per hour. Ally's flexible budget variance for July is: A) $37,862 unfavorable B) $29,170 unfavorable C) $10,692 unfavorable D) $9,692 unfavorable E) $28,170 unfavorable

Explanation / Answer

Answer: A) $37,862 unfavorable

Flexible budget variance=Standard cost-Actual cost

={[(5900/2000)*1770]*$39}-241500

=37862 U

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.