Franklin Manufacturing Company set its standard variable manufacturing cost at $$29$ per unit of product. The company planned to

make and sell $3,300$ units of product during Year $3.$ More specifically, the master budget called for total variable manufacturing cost to

be $$95,700.$ Actual production during Year $3$ was $3,500$ units, and actual variable manufacturing costs amounted to $$102,260.$ The

production supervisor was asked to explain the variance between budgeted and actual cost $($$$102,260-$$$95,700=$$$6,560).$ The

supervisor responded that she was not responsible for the variance that was caused solely by the increase in sales volume controlled

by the marketing department.

Required

a$.$ Determine the flexible budget variance and indicate the effect of the variance by selecting favorable $($F$)$ or unfavorable $($U$).$

Note: Select "None" if there is no effect $($i$.$e$.,$ zero variance$).$

b$.$ Do you agree with the production supervisor?

a$.$ Flexible budget variance

$1$

b$.$ Do you agree with the production supervisor?