Mary’s Fine Fashions US Company Mary’s Fine Fashions Manufactures and Sells Various Types

question 107

Multiple Choice

Mary’s Fine Fashions
US company Mary’s Fine Fashions manufactures and sells various types of women’s clothing. At the end of 2008, Mary had estimated for the production and sale of 25 000 short-sleeve shirts. Each shirt has a standard calling for 2.5 yards of direct material at a standard cost of $1.25 per yard and 12 minutes of direct labour time at a standard cost of $.20 per minute. During 2009, the company actually produced and sold 23 000 shirts. These 23 000 shirts had an actual direct materials cost of $77 142 (59 340 yards at $1.30 per yard) and an actual direct labour cost of $63 250 (253 000 minutes at $.25 per minute) . Each shirt sells for $20.
-What is Mary's flexible budget variance?

• A) $14 475 F
• B) $28 950 U
• C) $42 267 F
• D) $13 317 U