Based on the following, what is the total production cost flexible budget variance?
A) $925 F
B) $450 U
C) $725 F
D) $725 U
A .A) Total production cost flexible budget variance = Total direct materials variance + Total direct labor variance + Total manufacturing overhead variance = $150 F + $50 F + $725 F = $925 F
Notes:
Direct materials cost variance $300 F
Direct materials efficiency variance 150 U
Total direct materials variance $150 F
Direct labor cost variance $450 U
Direct labor efficiency variance 500 F
Total direct labor variance $50 F
Variable overhead cost variance $350 U
Variable overhead efficiency variance 425 F
Total variable overhead variance 75 F
Add fixed overhead cost variance 650 F
Total manufacturing overhead variance $725 F
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