Bermans Camera shop problem.

Bermans 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.

Flexible

Budget Price Efficiency

Material A 40,000 1,000F 3,000U

Material B 60,000 500U 1,500F

Direct manufacturing labor 80,000 500U 2,500F

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?