Answer the following questions using the information below:
Midend's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.
$\begin{array}{lrrr} &\text { Flexible }&\text { Variances }\
& \text { Budget } & \text { Price } & \text { Efficiency } \
\text { Material A } & \$ 25,000 & \$ 1,500 \mathrm{U} & \$ 1,800 \mathrm{~F} \
\text { Material B } & 32,000 & 600 \mathrm{~F} & 900 \mathrm{U} \
\text { Material C } & 42,000 & 1,300 \mathrm{U} & 900 \mathrm{~F}
\end{array}$
-The actual amount spent for Material B was ________.
A) $31,700
B) $30,500
C) $33,500
D) $32,300

Question

Answer the following questions using the information below:
Midend's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.
 $\begin{array}{lrrr} &\text { Flexible }&\text { Variances }\
& \text { Budget } & \text { Price } & \text { Efficiency } \
\text { Material A } & \$ 25,000 & \$ 1,500 \mathrm{U} & \$ 1,800 \mathrm{~F} \
\text { Material B } & 32,000 & 600 \mathrm{~F} & 900 \mathrm{U} \
\text { Material C } & 42,000 & 1,300 \mathrm{U} & 900 \mathrm{~F}
\end{array}$
-The actual amount spent for Material B was ________.
A) $31,700
B) $30,500
C) $33,500
D) $32,300

Quizplus · Accepted Answer

The flexible budget for Material B is $32,000. The price variance is $600 favorable, which means that the actual price paid for Material B was $600 less than the budgeted price. The efficiency variance is $900 unfavorable, which means that the actual quantity of Material B used was 900 units more than the budgeted quantity. Therefore, the actual amount spent for Material B was $32,000 + $600 - $900 = $32,300.

Answer the Following Questions Using the Information Below: Midend's Camera

Answer the Following Questions Using the Information Below:
Midend's Camera