Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell

9th Edition

111970958X, 9781119709589

More Books

Students also viewed these Accounting questions

Question

Can you see what limitations your purpose imposes on your strategy?

Answered: 1 week ago