QUESTIONS Ray Company produces rain umbrellas. As part of their budgeting process for 2020, Ray Company...

Transcribed Image Text:

QUESTIONS Ray Company produces rain umbrellas. As part of their budgeting process for 2020, Ray Company produced the following standards regarding production costs per unit Direct Material Direct Labor 5.00 7.00 per unit Ray Company budgeted for the production and selling of 25,000 units of umbrellas in their static budget. However, during the year 2020 they actually produced and sold 27.300 umbrellas Ray Company wants to create a flexible budget to calculate flexible budget variances as well as volume variances. What amount for Direct Materials will appear in their flexible budge $330,000 $137.500 $192.500 O $125.000 QUESTIONS Ray Company produces rain umbrellas. As part of their budgeting process for 2020, Ray Company produced the following standards regarding production costs per unit Direct Material Direct Labor 5.00 7.00 per unit Ray Company budgeted for the production and selling of 25,000 units of umbrellas in their static budget. However, during the year 2020 they actually produced and sold 27.300 umbrellas Ray Company wants to create a flexible budget to calculate flexible budget variances as well as volume variances. What amount for Direct Materials will appear in their flexible budge $330,000 $137.500 $192.500 O $125.000