Kevin Jarvis is the controller of Bitterroot Industries.He prepared the following budgeted income statement at various levels of sales.After careful review, and after discussions with the sales and production managers, the CEO determines that the best alternative is to base the budget on a sales volume of 30,000 units. Actual results for the year were 28,000 units, reflected in the following income statement: What is the flexible budget variance for direct material?
A)$28,000 favorable
B)$28,000 unfavorable
C)$6,000 favorable
D)$34,000 unfavorable

Question

Kevin Jarvis is the controller of Bitterroot Industries.He prepared the following budgeted income statement at various levels of sales.After careful review, and after discussions with the sales and production managers, the CEO determines that the best alternative is to base the budget on a sales volume of 30,000 units.  Actual results for the year were 28,000 units, reflected in the following income statement:  What is the flexible budget variance for direct material?
A)$28,000 favorable 
B)$28,000 unfavorable 
C)$6,000 favorable 
D)$34,000 unfavorable

Quizplus · Accepted Answer

The Answer of Kevin Jarvis is the controller of Bitterroot Industries.He prepared the following budgeted income statement at various levels of sales.After careful review, and after discussions with the sales and production managers, the CEO determines that the best alternative is to base the budget on a sales volume of 30,000 units.  Actual results for the year were 28,000 units, reflected in the following income statement:  What is the flexible budget variance for direct material?
A)$28,000 favorable 
B)$28,000 unfavorable 
C)$6,000 favorable 
D)$34,000 unfavorable

Kevin Jarvis Is the Controller of Bitterroot Industries