The flexible-budget variance for materials is $2,000 (U). The sales-volume variance is $18,000 (U). The price variance for material is $38,000 (F). The efficiency variance for direct manufacturing labor is $12,000 (F). Calculate the efficiency variance for materials.
A) $40,000 favorable
B) $18,000 unfavorable
C) $6,000 favorable
D) $40,000 unfavorable

Question

Quizplus · Accepted Answer

$2,000(U) = $38,000(F) + Price variance
Price variance = $2,000 + $38,000 = $40,000 (U)

The Flexible-Budget Variance for Materials Is $2,000 (U)