Marigold Company prepared the following data in its static budget based on 227000 machine hours: Direct Materials = $454000 Direct labour= 227000 Variable overhead=1120000 Fixed overhead= 2100000 Actual Results: Machine hours= 237000 hours, Direct materials = $470000, Direct labour= 249000, Variable overhead = 1151000, Fixed overhead = 2108000. What was the difference between the actual and budgeted Direct Material costs at the actual level of activity?
Marigold Company prepared the following data in its static budget based on 227000 machine hours: Direct Materials = $454000 Direct labour= 227000 Variable overhead=1120000 Fixed overhead= 2100000 Actual Results: Machine hours= 237000 hours, Direct materials = $470000, Direct labour= 249000, Variable overhead = 1151000, Fixed overhead = 2108000. What was the difference between the actual and budgeted Direct Material costs at the actual level of activity?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Marigold Company prepared the following
data in its static budget based on 227000
machine hours:
Direct Materials = $454000
Direct labour= 227000
Variable overhead=1120000
Fixed overhead= 2100000
Actual Results: Machine hours= 237000
hours, Direct materials = $470000, Direct
labour= 249000, Variable overhead =
1151000, Fixed overhead = 2108000.
What was the difference between the
actual and budgeted Direct Material costs
at the actual level of activity?
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