Answer the following questions using the information below:
Samir Incorporated planned to use $24 of material per unit but actually used $25 of material per unit, and planned to make 2,000 units but actually made 2,400 units.
-The flexible-budget variance is:

Question

Quizplus · Accepted Answer

The flexible-budget variance for materials can be calculated as the difference between the actual cost and the flexible budget cost. The flexible budget cost is based on the actual output level at the planned cost per unit. Therefore, the flexible budget cost for materials is 2,400 units * $24 planned cost per unit = $57,600. The actual cost is 2,400 units * $25 actual cost per unit = $60,000. The variance is $60,000 - $57,600 = $2,400 unfavorable, because the actual cost is higher than the flexible budget cost.

Answer the Following Questions Using the Information Below