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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 1 lb. 0.5 lb. Standard Price (SP) per pound $3.00 ? Actual Quantity (AQ) used per unit 3 lbs. 2 lbs. Actual Price (AP) paid for material $1.25 $2.50 Actual Quantity Purchased (AQP) and used 3,000 lbs. 800 lbs. Price variance ? $1,600 F Quantity variance $1,050 U ? Flexible budget variance ? $1,262 F Number of units produced 175 450 What is the direct materials flexible budget variance for steel used to manufacture the trains? A. $4,200 unfavorable O B. $6,300 unfavorable OC. $4,200 favorable O D. $6,300 favorable
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