Squeaky clean produces commercial strength cleansing supplies. two of its main products are window cleanser that uses ammonia, and floor cleanser that uses bleach. information for the most recent period follows:
product names window cleaner(ammonia) floor cleaner(bleach)
direct materials information
standard ounces per unit 16 oz. 24oz.
standard price (sp) per ounce $0.25 ?
actual quantity (aq) used per unit 20oz. 22oz.
actual price (ap) paid for material $1.75 $0.72
actual quantity purchased (aqp)
and used 1,000oz. 2,800oz.
price variance ? $56
u
quantity variance $4,900
u ?
flexible budget variance ? $504
f
number of units produced 700 400
what is the direct materials flexible budget variance for ammonia?
a. $6,400 favorable
b. $6,400 unfavorable
c. $3,400 unfavorable
d. $3,400 favorable
Answers: 3
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