Ask Question
17 February, 09:50

Bartholomew Corporation's master budget calls for the production of 6,000 units of product monthly. The master budget includes indirect labor of $396,000 annually; Bartholomew considers indirect labor to be a variable cost. During the month of September, 5,600 units of product were produced, and indirect labor costs of $30,970 were incurred. A performance report utilizing flexible budgeting would report a flexible budget variance for indirect labor of

a. $170 unfavorable

b. $170 favorable

c. $2,030 unfavorable

d. $2,030 favorable

+5
Answers (1)
  1. 17 February, 12:14
    0
    Answer is A $170 unfavourable

    Explanation:

    396,000/12*6,000

    = $5.5 per unit

    So flexible budget 5.5 * 5,600 = 30,800

    Variance = actual - flexible

    = 30,970 - 30,800

    = 170 (Unfavourable)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Bartholomew Corporation's master budget calls for the production of 6,000 units of product monthly. The master budget includes indirect ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers