Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the question below.
- What is the direct materials variance between the actual results and the flexible budget?

Question

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the question below. 
- What is the direct materials variance between the actual results and the flexible budget?

Quizplus · Accepted Answer

The direct materials variance is the difference between the actual direct materials cost and the flexible budget direct materials cost. In this case, the actual direct materials cost is $140, and the flexible budget direct materials cost is $126. Therefore, the direct materials variance is $14 (U).

Use the Following Performance Report for a Cost Center of the Dry