The following information pertains to Finger Company:
* Direct labour is measured in hours
-The total flexible-budget variance for direct labour is
A) $ 9,000 unfavourable.
B) $ 9,000 favourable.
C) $30,000 unfavourable.
D) $30,000 favourable.

Question

The following information pertains to Finger Company:
  * Direct labour is measured in hours
-The total flexible-budget variance for direct labour is
A) $ 9,000 unfavourable. 
B) $ 9,000 favourable. 
C) $30,000 unfavourable. 
D) $30,000 favourable.

Quizplus · Accepted Answer

The total flexible-budget variance for direct labour is calculated by comparing the actual costs to the flexible budget costs. An unfavourable variance indicates that actual costs were higher than budgeted, which is the case here with $9,000.

The Following Information Pertains to Finger Company