Q1) Ranger Company produces men's ties. Budgeted and actual costs for March follow:
|
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
|
Total variance from flex:
i) $400 unfavorable.
ii) $400 favorable.
iii) $4,200 unfavorable.
iv) $4,200 favorable.
v) $1,400 unfavorable.