Rodabaugh Natural Dying Corporation measures its activity in terms of skeins of

Question

Rodabaugh Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 15,900 skeins and the actual level of activity was 16,100 skeins. The company's owner budgets for dye costs, a variable overhead cost, at $0.87 per skein. The actual dye cost last month was $14,800. In the company's flexible budget performance report for last month, what would have been the variance for dye costs?

            A)      $967 U

            B)      $174 U

            C)      $184 U

            D)      $793 U

Explanation / Answer

$793 U

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