Murray Corporation 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 15,000 units at a direct material cost of $4 per unit (2 pounds of materials per unit at $2 per pound ). In October , Murray produced 16,000 units If actual direct materials costs for October were $59,400 ( 33,000 pounds of materials were used in production at a cost of $ 1.80 per pound ), compute the flexible budget variance for direct materials . $600 unfavorable $4,600 unfavorable None of the listed choices are correct $600 favorable $ 4,600 favorable
Murray Corporation 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 15,000 units at a direct material cost of $4 per unit (2 pounds of materials per unit at $2 per pound ). In October , Murray produced 16,000 units If actual direct materials costs for October were $59,400 ( 33,000 pounds of materials were used in production at a cost of $ 1.80 per pound ), compute the flexible budget variance for direct materials . $600 unfavorable $4,600 unfavorable None of the listed choices are correct $600 favorable $ 4,600 favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Murray Corporation 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 15,000 units at a direct material cost of $4 per unit (2 pounds of materials per unit at $2 per pound ). In October , Murray produced 16,000 units If actual direct materials costs for October were $59,400 ( 33,000 pounds of materials were used in production at a cost of $ 1.80 per pound ), compute the flexible
$600 unfavorable
$4,600 unfavorable
None of the listed choices are correct
$600 favorable
$ 4,600 favorable
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