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Handley Manufacturing Company has prepared the following flexible budget for August and is in the process of interpreting the variances. F denotes a favorable variance
Handley Manufacturing Company has prepared the following flexible budget for August and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Variances Material A Material B Direct manufacturing labor Flexible Budget $44,000 62,000 84,000 Price $1,400F 800U 300U Efficiency $3,300U 1,300F 2,700F The most likely explanation of the above variances for Material A is that A. the company used a higher - priced supplier B. a lower price than expected wa paid for Material A C. higher - quality raw materials were used than were planned D. Material A used during September was $2,000 less than expected
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