If production was budgeted at 400 units and the actual production was 420 units, what would be the static budget variance for materials if the actual cost of materials was £4,150 and the budgeted cost per unit is £10?
A)£50 F
B)£200 U
C)£100 F
D)£150 U

Question

Quizplus · Accepted Answer

The static budget variance for materials is calculated as the difference between the budgeted cost for the budgeted production and the actual cost. The budgeted cost for 400 units is 400 x £10 = £4,000. The actual cost is £4,150. The variance is £4,150 - £4,000 = £150 Unfavorable (U).

If Production Was Budgeted at 400 Units and the Actual