Berman?s Camera shop has prepared the following flexible budget for september and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.

1) What is the actual amount spent for Material B?

a) 61,000

B) 59,000

c) 65,000

d) 58,500

e) 60,000

2) Favorable direct manufacturing labor efficiency variances are:

a) debited to the wages payable control account

b) debited to the work- in- process control account

c) always debited

d) always credited

3) What is the actual amount spent for direct manufacturing labor?

Transcribed Image Text:

Flexible Budget Price Efficiency 40,000 1,000F 3,000U 500U 1,500F 500U 2,500F Material A Material B 60,000 Direct manufacturing labor 80,000 Flexible Budget Price Efficiency 40,000 1,000F 3,000U 500U 1,500F 500U 2,500F Material A Material B 60,000 Direct manufacturing labor 80,000

Answer rating: 100% (QA)

1 Correct option is B 59000 Actual amount spent Flexible budget unfavorable f... View the full answer