If production was budgeted at 400 units and the actual production was 420 units,what would be the flexible budget variance for materials if the actual cost of materials was $4,150 and the budgeted cost per unit is $10?
A)$50 F
B)$100 F
C)$150 U
D)$200 U

Question

Quizplus · Accepted Answer

The flexible budget for materials would be based on the actual production of 420 units at the budgeted cost per unit of $10, totaling $4,200. The actual cost was $4,150, so the variance is $50 favorable (F) because the actual cost was less than the flexible budget amount.

If Production Was Budgeted at 400 Units and the Actual