An organization planned to use $44 of material per unit of activity but it actually used $42 of material per unit of activity,and it planned to make 1,200 units but it actually made 1,000 units.The flexible budget variance for materials is:
A)$2,000 favorable.
B)$14,000 unfavorable.
C)$16,400 unfavorable.
D)$2,400 favorable.

Question

Quizplus · Accepted Answer

A)(1,000 units × $44)- (1,000 × $42)= $2,000 favorable variance

An Organization Planned to Use $44 of Material Per Unit