Answer the following questions using the information below:
Brennen Incorporated planned to use $24 of material per unit but actually used $25 of material per unit, and planned to make 2,000 units but actually made 2,400 units.
-The flexible-budget variance is:
A)$9,600 favorable
B)$2,400 unfavorable
C)$10,000 unfavorable
D)$12,000 favorable

Question

Quizplus · Accepted Answer

The flexible-budget variance is calculated as (Actual Quantity x Actual Price) - (Actual Quantity x Budgeted Price). 
In this case, the flexible-budget variance is (2,400 x $25) - (2,400 x $24) = $2,400 unfavorable.

Answer the Following Questions Using the Information Below