Q1) Ranger Company produces men's ties. Budgeted and actual costs for March given below:
|
Cost
|
Budget at 2,500 units
|
Actual at 2,900 units
|
|
Direct materials
|
$55,000
|
$64,000
|
|
Direct labor
|
70,000
|
81,000
|
|
Fixed overhead
|
35,000
|
35,400
|
Considering increased sales, which cost or costs have a favourable variance?
i) None. All variances are unfavorable.
ii) All of the variances are favorable.
iii) Direct materials only
iv) Direct labor only
v) Fixed overhead only