Kelly Company gathered the following information for 2009:

-What is the direct materials flexible budget variance for Product X?

Question

Kelly Company gathered the following information for 2009:
 
-What is the direct materials flexible budget variance for Product X?

Quizplus · Accepted Answer

The direct materials flexible budget variance is calculated by comparing the actual costs of direct materials to what the costs should have been for the actual level of production. A favorable variance indicates that the actual costs were less than the budgeted costs, while an unfavorable variance indicates the opposite. The correct answer, D) $200 favorable, suggests that the actual costs were $200 less than what was budgeted for the actual production level.

Kelly Company Gathered the Following Information for 2009