Question
Rundle Manufacturing Company set its standard variable manufacturing cost at $22 per unit of product. The company planned to make and sell 3,400 units of
Rundle Manufacturing Company set its standard variable manufacturing cost at $22 per unit of product. The company planned to make and sell 3,400 units of product during Year 3. More specifically, the master budget called for total variable manufacturing cost to be $74800. Actual production during Year 3 was 3,700 units, and actual variable manufacturing costs amounted to $82,130. The production supervisor was asked to explain the variance between budgeted and actual cost ($82,130 - $74,800 = $7,330). The supervisor responded that she was not responsible for the variance that was caused solely by the increase in sales volume controlled by the marketing department. Determine the flexible budget variance
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