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The Sun Corporation estimated the budgeted costs for the production of teddy bears in the following table: Direct Labor Direct Materials Budgeted Price $20 per
The Sun Corporation estimated the budgeted costs for the production of teddy bears in the following table: Direct Labor Direct Materials Budgeted Price $20 per hour $30 per teddy bear Budgeted Quantity .5 hours .6 per pound In February, Sun Corporation manufactured and sold 6,500 teddy bears using 900 pounds of materials at the cost of $26 and 610 direct labor hours at the wage of $17 per hour. What is the direct material flexible budget variance and direct material efficiency variance in February? Flexible Budget Variance: 93,600 Favorable; Direct Material Efficiency Variance: 90,000 Favorable O A. Flexible Budget Variance: 93,600 Unfavorable; Direct Material Efficiency Variance: 90,000 Unfavorable OB. Flexible Budget Variance: 93,600 Favorable; Direct Material Efficiency Variance: 90,000 Unfavorable OC. Flexible Budget Variance: 93,600 Unfavorable; Direct Material Efficiency Variance: 90,000 Favorable OD
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