Question

This question refers to flexibleminusbudget variance formulas with the following descriptions for the​ variables: A​ = Actual; B​ = Budgeted; P​ = Price; Q​ = Quantity. The flexibleminusbudget variance for materials is $ 2 comma 000 ​(U). The salesminusvolume variance is $ 13 comma 000 ​(U). The price variance for material is $ 38 comma 000 ​(F). The efficiency variance for direct manufacturing labor is $ 9 comma 000 ​(F). Calculate the efficiency variance for materials.

Answer 1

$40,000 (U)

Step-by-step explanation:

Given that,

Flexible-budget variance for materials = $2,000

Price variance for material = $38,000

Sales-volume variance = $13,000

Efficiency variance for direct manufacturing labor = $9,000 (F)

Flexible-budget variance for materials = Price variance for material + Efficiency variance for materials

2,000 (U) = 38,000 (F) + Efficiency variance for materials

Efficiency variance for materials = 2,000 + 38,000

= $40,000 (U)