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3.Tractor Corporation produces toy tractors. What is the combined total of the flexible budget variances? The company uses the following direct cost categories: Category Standard
3.Tractor Corporation produces toy tractors. What is the combined total of the flexible budget variances? The company uses the following direct cost categories: Category Standard Inputs for 1 output Std. Cost per input Direct Materials 4.00 $12.50 Direct Labour 1.40 9.50 Direct Marketing 0.54 5.50 Actual performance for the company is shown below: Actual output: 5,000 units Direct Materials: Materials costs $299,000 Input purchased and used 23,000 Actual price per input $13.00 Direct Manufacturing Labour: Labour costs $95,000 Labour-hours of input 9,500 Actual price per hour $10.00 Direct Marketing Labour: Labour costs $40,000 Labour-hours of input 5,000 Actual price per hour $8.00 Select one: a. $78,500 unfavourable b. $77,500 unfavourable c. $99,000 unfavourable d. $102,650 unfavourable
The company uses the following direct cost categories:
Category
Standard Inputs
for 1 output
Std. Cost
per input
Direct Materials
4.00
$12.50
Direct Labour
1.40
9.50
Direct Marketing
0.54
5.50
Actual performance for the company is shown below:
Actual output: 5,000 units
Direct Materials:
Materials costs
$299,000
Input purchased and used
23,000
Actual price per input
$13.00
Direct Manufacturing Labour:
Labour costs
$95,000
Labour-hours of input
9,500
Actual price per hour
$10.00
Direct Marketing Labour:
Labour costs
$40,000
Labour-hours of input
5,000
Actual price per hour
$8.00
Select one:
a. $78,500 unfavourable
b. $77,500 unfavourable
c. $99,000 unfavourable
d. $102,650 unfavourable
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