Flexible budget-variances
The cost accountant for Bradley,Inc.,prepared the following monthly performance report relating to the Finishing Department: (a)Compute the amounts that should be included for each of the following in a flexible budget prepared for a 6,500-unit level of production:
(1)Direct materials: $_______________
(2)Direct labor: $_______________
(3)Fixed manufacturing overhead: $_______________
(b)Assume that a revised performance report is prepared for the 6,500-unit level of production using a flexible budget approach.Compute the cost variances for each of the following.Indicate whether each variance is favorable (F)or unfavorable (U).

Question

Flexible budget-variances
The cost accountant for Bradley,Inc.,prepared the following monthly performance report relating to the Finishing Department:  (a)Compute the amounts that should be included for each of the following in a flexible budget prepared for a 6,500-unit level of production:
(1)Direct materials: $_______________
(2)Direct labor: $_______________
(3)Fixed manufacturing overhead: $_______________
(b)Assume that a revised performance report is prepared for the 6,500-unit level of production using a flexible budget approach.Compute the cost variances for each of the following.Indicate whether each variance is favorable (F)or unfavorable (U).

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The Answer of Flexible budget-variances
The cost accountant for Bradley,Inc.,prepared the following monthly performance report relating to the Finishing Department:  (a)Compute the amounts that should be included for each of the following in a flexible budget prepared for a 6,500-unit level of production:
(1)Direct materials: $_______________
(2)Direct labor: $_______________
(3)Fixed manufacturing overhead: $_______________
(b)Assume that a revised performance report is prepared for the 6,500-unit level of production using a flexible budget approach.Compute the cost variances for each of the following.Indicate whether each variance is favorable (F)or unfavorable (U).

Flexible Budget-Variances