Answer the following questions using the information below:
Dynondo Incorporated planned to use materials of $12 per unit but actually used materials of $13 per unit, and planned to make 1,500 units but actually made 1,800 units.
-The flexible-budget variance for materials is ________.
A) $1,500 favorable
B) $1,800 unfavorable
C) $1,500 unfavorable
D) $1,800 favorable

Question

Quizplus · Accepted Answer

Flexible-budget variance for materials = (Actual quantity of materials used – Budgeted quantity of materials allowed) x Budgeted price per unit of materials
Flexible-budget variance for materials = (1,800 – 1,500) x $12 = $3,600 unfavorable
Since the actual cost of materials is higher than the planned cost, the variance is unfavorable. Therefore, the correct answer is option B, $1,800 unfavorable.

Answer the Following Questions Using the Information Below