At 14000 direct labor hours, the flexible budget for indirect materials is $28000

Finance Aug 14, 2020

At 14000 direct labor hours, the flexible budget for indirect materials is $28000. If $30400 are incurred at 14400 direct labor hours, the flexible budget report should show the following difference for indirect materials:

Expert Solution

Computation of the difference in indirect materials:-

Indirect material cost = $28,000 / 14,000

= $2 per direct labor hours

Budgeted Cost = 14,400 * $2

= $28,8,00

Difference in indirect materials = Budgeted cost - Actual cost

= $28,800 - $30,400

= $1,600 (Unfavorable)

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote