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Homework answers / question archive / At 14000 direct labor hours, the flexible budget for indirect materials is $28000
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:
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)
