Answer the following questions using the information below:
Aurous Incorporated planned to use $35 of material per unit but actually used $34 of material per unit, and planned to make 1,500 units but actually made 1,300 units.
-The flexible-budget variance for materials is ________.
A) $1,500 favorable
B) $1,500 unfavorable
C) $1,300 unfavorable
D) $1,300 favorable

Question

Quizplus · Accepted Answer

The flexible-budget variance for materials is favorable because the actual material cost per unit was lower than the planned material cost per unit, and the actual number of units produced was lower than the planned number of units.

Answer the Following Questions Using the Information Below