ANSWER: Flexible budget variance for DM: 9,600 U

Flexible budget variance for DL: 3,600 U

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8-27 Basic Flexible Budget The budgeted prices for materials and direct labor per unit of finished product are $13 and $5, respectively. The production manager is delighted about the following data: Variance $6.000F 2,400F Master Actual Direct materials Direct labor $104.000 $98.000 37,600 40,000 1. Prepare a report that might provide a more detailed explanation of why the static (master) budget was not achieved. Good output was 6,800 units