Beta Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per luxury wallet are $41, $5, and $11, respectively. Assume all three direct-cost items shown are variable costs. The president is pleased with the following performance report: Direct materials Direct manufacturing labor Direct marketing (distribution) labor Actual Costs $373,500 48,600 103,500 Static Budget $410,000 50,000 110,000 How much was the flexible budget variance for direct materials? Variance $36,500 F 1,400 F 6,500 F
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.
![Beta Company's budgeted prices for direct materials, direct manufacturing labor, and
direct marketing (distribution) labor per luxury wallet are $41, $5, and $11,
respectively. Assume all three direct-cost items shown are variable costs. The
president is pleased with the following performance report:
Direct materials
Direct manufacturing labor
Direct marketing (distribution) labor
O A. $41,000 F
O B.
How much was the flexible budget variance for direct materials?
$4,500 F
O C. $4,500 U
Actual Costs
$373,500
48,600
103,500
O D. $36,500 U
Static Budget
$410,000
50,000
110,000
Variance
$36,500 F
1,400 F
6,500 F](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe23254fa-aad2-4986-a3e7-c565fc49276d%2F37924efc-6567-4fd0-aa43-cefc9de3f464%2F7d0gaw_processed.jpeg&w=3840&q=75)
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