please highlight the answers and only submit if you’re positive. The following i
ID: 2598006 • Letter: P
Question
please highlight the answers and only submit if you’re positive.The following informaion is for direct material cost for X Company for 2016: Budgeted pounds per unit of product Budgeted cost per pound 3.4 $10.10 5,410 units 3.2 $10.40 4,860 units Budgeted production Actual pounds per unit of product A-tual cost per pound Actual production 1. What was the direct material static budget for 20162 Sdenia Anwer Tries 0/2 2. What was the direct material flexible budget variance for 2016 (a positive number means a favorable variance; a negative number means an unfavorable variance)? Submit Answer Tries 0/2
Explanation / Answer
1. Static budget direct material = (5410*3.4*10.10) = 185779.40
2. Flexible budget variance = Flexible budget direct material-actual direct material
= (4860*3.4*10.10) - (4860*3.2*10.40)
Flexible budget variance = 5151.60 Favourable
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