The Valenti Company Uses Flexible Budgeting for Cost Control

question 7

Multiple Choice

The Valenti Company uses flexible budgeting for cost control.Valenti produced 10,800 units of product during October,incurring indirect material costs of $13,000.Its master budget for the reflected indirect material costs of $180,000 at a production volume of 144,000 units.What was the flexible budget variance for the indirect material costs in October?

• A) $1,100 favorable.
• B) $1,100 unfavorable.
• C) $2,000 favorable.
• D) $500 favorable.

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Definitions:

Rods

Photoreceptor cells in the retina of the eye, highly sensitive to light, and responsible for vision under low light conditions.

Optic Disc

The point of exit for ganglion cell axons leaving the eye. Because there are no rods or cones overlying the optic disc, it creates a blind spot in visual fields.

Sensory Retina

The part of the retina that contains photoreceptor cells (rods and cones) responsible for converting light into electrical signals for vision.

Macula Lutea

A region in the retina responsible for high-acuity vision where a high concentration of photoreceptor cells are located.