Universal Dive Products Ltd.makes high quality gear for scuba diving.Their top quality mask is called Super Mask and is produced in batches.The two batch activities are setup (cost driver = setup hours)and quality inspection (cost driver = inspection hours).The company budgeted to produce 40,000 masks; however, actual production was 50,000.The pertinent ABC data for the upcoming period is as follows:
Static Budget:
Actual Result:
Required:
Calculate the flexible-budget rate and efficiency variances for the quality inspection activity.

Question

Universal Dive Products Ltd.makes high quality gear for scuba diving.Their top quality mask is called Super Mask and is produced in batches.The two batch activities are setup (cost driver = setup hours)and quality inspection (cost driver = inspection hours).The company budgeted to produce 40,000 masks; however, actual production was 50,000.The pertinent ABC data for the upcoming period is as follows:
  Static Budget:
  Actual Result:
  Required:
Calculate the flexible-budget rate and efficiency variances for the quality inspection activity.

Quizplus · Accepted Answer

The Answer of Universal Dive Products Ltd.makes high quality gear for scuba diving.Their top quality mask is called Super Mask and is produced in batches.The two batch activities are setup (cost driver = setup hours)and quality inspection (cost driver = inspection hours).The company budgeted to produce 40,000 masks; however, actual production was 50,000.The pertinent ABC data for the upcoming period is as follows:
  Static Budget:
  Actual Result:
  Required:
Calculate the flexible-budget rate and efficiency variances for the quality inspection activity.