Question: Ash Automation's budgeted direct material cost based on a forecasted volume of 10,000 units of microcontroller chips is $20,000. Due to a surge in demand,

Ash Automation's budgeted direct material cost based on a forecasted volume

Ash Automation's budgeted direct material cost based on a forecasted volume of 10,000 units of microcontroller chips is $20,000. Due to a surge in demand, the actual production level in May is 11,000 units. The actual direct material cost for May is $25,000. Based on a flexible budgeting system, the direct materials variance in May is: A. $5,000 favourable B. $3,000 favourable C. $3,000 unfavourable D. $5,000 unfavourable O E. $2,728 unfavourable

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