Answer the following questions using the information below:
Wagga Wagga Printing Incorporated planned to use $12 of material per unit but actually used $14 of material per unit,and planned to make 1000 units but actually made 1200 units.
-The flexible-budget variance is:
A)$6000 favourable.
B)$2400 unfavourable.
C)$4800 favourable.
D)$5000 unfavourable.

Question

Quizplus · Accepted Answer

The flexible-budget variance is calculated by (actual activity - budgeted activity) x budgeted rate.

In this case, the flexible-budget variance for the material cost is: 
(1200 - 1000) x $12 = $2400 unfavorable

Therefore, the best choice is B) $2400 unfavorable.

Answer the Following Questions Using the Information Below