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What is the answer to Q9 point a?

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9.
The following Information applies to questions 9 and 10.
Abita Manufacturing has prepared the following flexible budget for October and it is in
the process of interpreting the variances. F denotes a favorable variance and U denotes
an unfavorable variance.
-Variances
Flexible Budget
Price/Rate
Use/Efficiency
Material A
$20,000
$1,000 F
$3,000 U
Material B
30,000
500 U
1,500 F
Direct labor
40,000
500 U
2,500 F
The most likely explanation of the above variances for Material A is that: (Points: 2)
a lower price than expected was paid for Material A
higher quality raw materials were used than were planned
the company used a new supplier
d. Material A used during October was $2,000 less than expected

Top Answer

A. A lower price than... View the full answer

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