Better Products Inc

question 10

Multiple Choice

Better Products Inc. planned to use $36 of material per unit but actually used $34 of material per unit, and planned to make 1,520 units but actually made 1,310 units.
The flexible-budget variance for materials is ________.

• A) $3,040 favorable
• B) $3,040 unfavorable
• C) $2,620 unfavorable
• D) $2,620 favorable

---

Definitions:

Product Assembly

The process of putting together various components to form a final product.

Labor Incurred

The total cost of workforce employed for a certain period, including wages, benefits, and taxes related to labor.

Direct

Pertaining to costs, expenses, or activities that can be specifically traced to a particular project, department, or product without allocation.

Factory Building

A structure purposed for industrial processes including manufacturing, assembling, processing, or handling products.