Your Corporation's flexible budget cost formula for supplies, a variable overhead cost, is $2.17 per unit of output. The company's flexible budget performance report for last month showed a $4,531 favorable variance for supplies. During that month, 16,500 units were produced. Budgeted activity for the month had been 20,000 units. What was the actual cost per unit paid for indirect materials? O $1.90 O $2.17 O $2.44 O $1.94 O $2.40

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Corporation's flexible budget cost formula for supplies, a variable overhead cost, is $2.17 per unit of output. The company's flexible budget performance report for last month showed a $4,531 favorable variance for supplies. During that month, 16,500 units were produced. Budgeted activity for the month
had been 20,000 units. What was the actual cost per unit paid for indirect materials?
O $1.90
$2.17
$2.44
O $1.94
O $2.40
Transcribed Image Text:Your Corporation's flexible budget cost formula for supplies, a variable overhead cost, is $2.17 per unit of output. The company's flexible budget performance report for last month showed a $4,531 favorable variance for supplies. During that month, 16,500 units were produced. Budgeted activity for the month had been 20,000 units. What was the actual cost per unit paid for indirect materials? O $1.90 $2.17 $2.44 O $1.94 O $2.40
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