Tommy's Toys produces two types of toys: trains and dolls.Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls.Information regarding the usage of steel and plastic for the past year follows:

What is the direct materials flexible budget variance for steel used to manufacture the trains?

Question

Tommy's Toys produces two types of toys: trains and dolls.Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls.Information regarding the usage of steel and plastic for the past year follows:

What is the direct materials flexible budget variance for steel used to manufacture the trains?

Quizplus · Accepted Answer

B)
DM Price Variance = (Standard Price (SP)- Actual Price (AP))× Actual Amount Purchased
$625 F = ($1.50 - $1.25)× 2,500
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Tommy's Toys Produces Two Types of Toys: Trains and Dolls