Question
Question 12 (6 points) Jane's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances.
Question 12 (6 points) Jane's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Flexible Budget Price Variance Efficiency Variance Material A $40,000 Material B 60,000 $1,000F 500U $3,000U 1,500F Direct manufacturing labor 80,000 500U 2,500F The most likely explanation of the above variances for Material A is that a) a lower price than expected was paid for Material A b) higher-quality raw materials were used than were planned c) the company used a higher-priced supplier d) Material A used during September was $2,000 less than expected
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