Question
Boyce Manufacturing Co.'s operates 3 profit centers. The clothing center's static budget at 6,000 units of production includes $30,000 for direct labor, $6,000 for direct
Boyce Manufacturing Co.'s operates 3 profit centers. The clothing center's static budget at 6,000 units of production includes $30,000 for direct labor, $6,000 for direct materials, $12,000 for variable factory overhead, and controllable fixed costs of $24,000. Actual activity was 5,800 units with actual costs of $29,500 for direct labor, $11,500 for variable factory overhead, controllable fixed costs of $24,200, and $6,100 for direct materials. All units produced were budgeted to be sold for $16 each. Actual sales totaled $93,960. What variance will appear on the performance report for controllable margin? The answer is $260F. How do you get this answer, and what do the"F" and "U" (such as $900U) at the end mean?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started