Question
Buy N Larges master budget calls for the production of 5,000 units of product monthly. The master budget includes indirect marketing labor of $144,000 annually;
Buy N Larges master budget calls for the production of 5,000 units of product monthly. The master budget includes indirect marketing labor of $144,000 annually; Buy N Large considers this indirect labor to be a variable cost. During the month of April, 4,500 units of output were produced, and indirect marketing labor costs of $10,100 were incurred. A performance report would show a flexible-budget variance for indirect marketing labor that is closest to:
| a. | $1,900 U | |
| b. | $1,900 F | |
| c. | $700 U | |
| d. | $700 F |
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Financial Accounting For Decision Makers
Authors: Peter Atrill
8th Edition
1292099046, 978-1292099040
