Figure 8-8 Armati, Inc., is looking for feedback on company performance.The company compares the budget for the year with the actual costs.Data have been collected below:
Armati, Inc., had the following budgeted data:
The following actually occurred:

- Refer to Figure 8-8.The static budget variance for direct materials is

Question

Figure 8-8 Armati, Inc., is looking for feedback on company performance.The company compares the budget for the year with the actual costs.Data have been collected below:
Armati, Inc., had the following budgeted data:
 The following actually occurred:

- Refer to Figure 8-8.The static budget variance for direct materials is

Quizplus · Accepted Answer

The static budget variance for direct materials is calculated as:
Budgeted cost of direct materials - Actual cost of direct materials
= $1,000 - $600
= $400 F (favorable variance)
Therefore, the correct answer is C, $400 F.