Use the information below to answer the following questions.
$\begin{array}{lll}&\text { Flexed Budget for April }&\text { Actual for April }\
\text { Output } &40,000 \text { units } & 40,000 \text { units }\
\text { Sales } & \$ 500,000 & \$ 400,000 \
\text { Raw materials } & \$ 100,000 & \$ 88,000 \
\text { Labour } & \$ 250000 & \$ 180,000 \
\text { Overheads } & \$ 325000 & \$ 375,000
\end{array}$
-Refer to the table above. Which of these variance calculations is correct for Raw materials, Labour and Overheads respectively? Note: F - Favourable, U - Unfavourable (adverse).

Question

Use the information below to answer the following questions.
 $\begin{array}{lll}&\text { Flexed Budget for April }&\text { Actual for April }\
\text { Output } &40,000 \text { units } & 40,000 \text { units }\
\text { Sales } & \$ 500,000 & \$ 400,000 \
\text { Raw materials } & \$ 100,000 & \$ 88,000 \
\text { Labour } & \$ 250000 & \$ 180,000 \
\text { Overheads } & \$ 325000 & \$ 375,000
\end{array}$
-Refer to the table above. Which of these variance calculations is correct for Raw materials, Labour and Overheads respectively? Note: F - Favourable, U - Unfavourable (adverse).

Quizplus · Accepted Answer

The variance for Raw materials is $100,000 - $88,000 = $12,000 Favourable. The variance for Labour is $250,000 - $180,000 = $70,000 Favourable. The variance for Overheads is $375,000 - $325,000 = $50,000 Unfavourable.

Use the Information Below to Answer the Following Questions -Refer to the Table Above