A company that manufactures baseballs uses standard costing to value its inventory. The company planned for a
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A company that manufactures baseballs uses standard costing to value its inventory. The company planned for a customer order of 1,000 baseballs by budgeting a standard direct materials price for fabric of $1.00 per square foot and direct materials quantity of 1 square foot of fabric per baseball. Actual costs for the baseball fabric for the year came in at $1.50 per square foot and actual fabric usage was 0.5 square feet per baseball. What is the total variance from budget to actual for fabric used in the order? .
$250 unfavorable
b. $250 favorable
c. $750 favorable
d. $750 unfavorable
Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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