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Question
The following company information is available. The direct materials quantity variance is:
| Direct materials used for production . | 36,000 gallons |
| Standard quantity for units produced | 34,400 gallons |
| Standard cost per gallon of direct material ... | $6.00 |
| Actual cost per gallon of direct material ... | $6.10 |
A. $10,000 unfavorable.
B. $13,200 unfavorable.
C. $ 9,600 unfavorable.
D. $10,000 favorable.
E. $13,200 favorable.
Answer
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Related questions
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Although a fixed budget is only useful over the relevant range of operations, a flexible budget is useful over all possible production levels.
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A fixed budget performance report never provides useful information for evaluating variances.
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Use the following information to prepare a budgeted income statement for Arbor Company for the month of June.
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b. Cash receipts from sales: 40% is collected in the month of sale, 50% in the next month, and 10% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: April (actual), $1,450,000, May (actual), $1,600,000, and June (budgeted), $1,700,000.
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d. Budgeted cash disbursements for salaries in June: $260,000. Salaries payable on May 31 are $60,000 and are expected to be $50,000 on June 30.
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g. Accrued income taxes due in June: $48,000.
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