Kelsey, Inc. produces plastic grocery bags. Kelsey has developed a static budget for the month of August, which is based on 8,000 direct labour hours. During the quarter, the actual activity was 9,000 direct labour hours. Data for August are summarized as follows:

-Refer to the Figure.What is the flexible budget variance for August?
A)$12,000 U
B)$12,000 F
C)$29,000 U
D)$29,000 F

Question

Kelsey, Inc. produces plastic grocery bags. Kelsey has developed a static budget for the month of August, which is based on 8,000 direct labour hours. During the quarter, the actual activity was 9,000 direct labour hours. Data for August are summarized as follows:
 
-Refer to the Figure.What is the flexible budget variance for August?
A)$12,000 U 
B)$12,000 F 
C)$29,000 U 
D)$29,000 F

Quizplus · Accepted Answer

The Answer of Kelsey, Inc. produces plastic grocery bags. Kelsey has developed a static budget for the month of August, which is based on 8,000 direct labour hours. During the quarter, the actual activity was 9,000 direct labour hours. Data for August are summarized as follows:
 
-Refer to the Figure.What is the flexible budget variance for August?
A)$12,000 U 
B)$12,000 F 
C)$29,000 U 
D)$29,000 F