Cude & Associates LLC is in the process of preparing a Performance Report for its production department for the month of October . The original (static ) budget was based on expected monthly production of 15000 units at a direct labor cost of $30 each . In October , Cude & Associates produced 16,000 units . If the actual direct labor costs for October were $494,000 compute the flexible budget variance for direct labor .   $ 44,000 unfavorable $ 44,000 favorable $ 14,000 favorable None of the listed choices are correct $14,000 unfavorable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cude & Associates LLC is in the process of preparing a Performance Report for its production department for the month of October . The original (static ) budget was based on expected monthly production of 15000 units at a direct labor cost of $30 each . In October , Cude & Associates produced 16,000 units . If the actual direct labor costs for October were $494,000 compute the flexible budget variance for direct labor .

 

$ 44,000 unfavorable

$ 44,000 favorable

$ 14,000 favorable

None of the listed choices are correct

$14,000 unfavorable

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