Answer the following questions using the information below:
Domose Inc. planned to use $150 of material per unit but actually used $147 of material per unit, and planned to make 1,100 units but actually made 900 units.
-The flexible-budget variance for materials is ________.
A) $2,700 favorable
B) $2,700 unfavorable
C) $3,300 unfavorable
D) $3,300 favorable

Question

Quizplus · Accepted Answer

The flexible-budget variance for materials is calculated as (Actual Material Cost per Unit - Budgeted Material Cost per Unit) x Actual Units Produced. Here, it is ($147 - $150) x 900 = -$2,700, which is a favorable variance.

Answer the Following Questions Using the Information Below