Assume the following information for Jenkins Inc.: Total flexible budget direct materials costs: $5,000 Standard quantity of direct materials per unit: 40 items Budgeted production: 300 units Total actual direct materials costs: $4,500 Actual quantity of direct materials per unit: 42 items Actual production: 250 units What is Jenkins' direct materials efficiency variance? (do not round intermediate calculations, round final answer to the nearest cent)
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Assume the following information for Jenkins Inc.:
Total flexible budget direct materials costs:
$5,000
Standard quantity of direct materials per unit:
40 items
Budgeted production:
300 units
Total actual direct materials costs:
$4,500
Actual quantity of direct materials per unit:
42 items
Actual production:
250 units
What is Jenkins' direct materials efficiency variance? (do not round intermediate calculations, round final answer to the
nearest cent)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa2c23466-c1e2-444d-9366-2bf2bdd33ca7%2F8250616f-3768-4669-b7a0-74df9febc2c6%2F89cvnn_processed.png&w=3840&q=75)
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