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Loden is a local dress shop that makes casual dresses in fun prints.Below is some actual vs. budget information for Loden's dresses for the month

Loden is a local dress shop that makes casual dresses in fun prints.Below is some actual vs. budget information for Loden's dresses for the month of May.Assume no beginning/ending inventories for simplicity.The cost-allocation base for both variable and fixed overhead is direct labor-hours.

What is the flexible budget variance for direct materials?

a.$2,601.60 F

b.$405.60 U

c.$2,601.60 U

d.$405.60 F

image text in transcribed
Data for the Month of May # Dresses made and sold Selling price per dress Yards of fabric per dress Cost per yard of fabric Time in hours to sew one dress Cost of direct labor (per hour) Variable overhead costs (utilities, sewing machine maintenance, etc.) Fixed overhead costs (store rent, insurance, etc.) Actual 2,600 $39 2.9 $3.84 $14 $3,500 $4,900 Static Budget 2,400 $40 $3.66 0.9 $15 $3,000 $4,800

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