Questions 1 and 2 refer to the following information The following information i

Question

Questions 1 and 2 refer to the following information The following information is for direct labor cost for X Company for 2016: 3.5 $14.00 5,430 units Budgeted labor hours per unit of product Budgeted hourly wage rate Budgeted production Actual labor hours per unit of product Actual hourly wage rate Actual production $14.30 6,610 units 1. What was the direct labor static budget for 2016? $266,070 You are correct. Your receipt no. is 152-8618Previous Tries 2. What was the direct labor flexible budget variance for 2016 (a positive number means a favorable variance; a negative number means an unfavorable variance)? Submit Answer Tries o/2

Explanation / Answer

1. Static budget direct material = (5430*3.5*14) = 266070

2. Flexible budget variance = Flexible budget direct material-actual direct material

= (6610*3.5*14) - (6610*3*14.30)

Flexible budget variance = 40321 Favourable

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