Rogers Rods & Reels Ltd.
US-based Rogers Rods & Reels Ltd. manufactures and sells various types of fishing equipment. At the end of 2008, Rogers had estimated for the production and sale of 15 000 bass fishing rods. Each rod has a standard calling for 1.5 pounds of direct material at a standard cost of $8.00 per pound and 15 minutes of direct labour time at a standard cost of $.18 per minute. During 2009, Rogers actually produced and sold 16 000 rods. These 16 000 rods had an actual direct materials cost of $179 200 (25 600 pounds at $7.00 per pound) and an actual direct labour cost of $44 800 (224 000 minutes at $.20 per minute). Each rod sells for $50.
-What is Rogers' flexible budget variance?
A) $11 200 F
B) $11 200 U
C) $ 3500 F
D) $ 3500 U

Question

Quizplus · Accepted Answer

The Answer is A