Please show work 8pt For 2016 X Company estimated production

Please show work!

8pt For 2016, X Company estimated production of 3,100 units of finished product and direct material cost of $20,863. Actual production in 2016 was 2,600 units of finished product, and actual direct material cost was $13,710. What was the direct materials flexible budget variance in 2016 (assume that a positive number means a favorable variance and a negative number means an unfavorable variance)? 6. AO ss,955 BO s-5,191 ?? $4,434 DO $3.521 1083,788 FO$5,575

Solution

Direct materials flexible budget variance Actual cost       - flexible budget 13,710                  -   (20863/3100)*2600 13,710                  - 17,498 3788 F Answer ) option E 3788