NuArt Company's budgeted production for November is 5,500 units. Budgeted component unit costs include: direct materials, $24; direct labor, $30; variable overhead, $18. Budgeted fixed overhead is $100,000. NuArt's actual production for November was 6,000 units. Actual component unit costs include: direct materials, $24.50; direct labor, $29; variable overhead, $18.40. Actual fixed overhead was $94,000. NuArt's budget variance amount for direct materials in November would be: Multiple Choice $3,000 F. $3,000 U. $15,000 F. $15,000 U.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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NuArt Company's budgeted production for November is 5,500 units. Budgeted component unit costs include: direct materials, $24; direct labor, $30; variable overhead, $18. Budgeted fixed overhead is $100,000.
NuArt's actual production for November was 6,000 units. Actual component unit costs include: direct materials, $24.50; direct labor, $29; variable overhead, $18.40. Actual fixed overhead was $94,000.
NuArt's budget variance amount for direct materials in November would be:
Multiple Choice
$3,000 F.
$3,000 U.
$15,000 F.
$15,000 U.
Transcribed Image Text:NuArt Company's budgeted production for November is 5,500 units. Budgeted component unit costs include: direct materials, $24; direct labor, $30; variable overhead, $18. Budgeted fixed overhead is $100,000. NuArt's actual production for November was 6,000 units. Actual component unit costs include: direct materials, $24.50; direct labor, $29; variable overhead, $18.40. Actual fixed overhead was $94,000. NuArt's budget variance amount for direct materials in November would be: Multiple Choice $3,000 F. $3,000 U. $15,000 F. $15,000 U.
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