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Tommy's Toys produces two types of toys: trains and dolls. Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information

Tommy's Toys produces two types of toys: trains and dolls. Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information regarding the usage of steel and plastic for the past year follows:

Product Names

Steel

Plastic

Direct materials information

Standard pounds per unit

3 lb.

1.5 lb.

Standard Price (SP) per pound

$3.50

?

Actual Quantity (AQ) used per unit

2.0 lbs.

3.00 lbs.

Actual Price (AP) paid for material

$2.75

$3.25

Actual Quantity Purchased (AQP) and used

2,500 lbs.

1,000 lbs.

Price variance

?

$2,500 F

Quantity variance

$1400 U

?

Flexible budget variance

?

$1,937 F

Number of units produced

400

500

What is the direct materials flexible budget variance for steel used to manufacture the trains?

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