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Abell and Creek, LLC has prepared the following flexible budget figures for the current period and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Flexible Budget Price Variance Efficiency Variance Product A311 (total costs) $58,000 $1,500 F $3,000 U Product A325 (total costs) $42,000 $1,750 U $1,500 F Direct manufacturing labor only $71,000 $2,000 U $2,500 F Calculate the actual amount spent for Product A325 during the current period:

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anthougo

Answer:

Abell and Creek, LLC

The actual amount spent for Product A325 during the current period is:

= $42,250.

Explanation:

a) Data and Calculations:

                                                      Flexible       Price      Efficiency

                                                       Budget   Variance    Variance

Product A311 (total costs)            $58,000    $1,500 F    $3,000 U

Product A325 (total costs)          $42,000    $1,750 U     $1,500 F

Direct manufacturing labor only $71,000   $2,000 U    $2,500 F

Actual amount spent for Product A325:

Flexible budget $42,000

Price variance         1,750 U

Efficiency variance 1,500 F

Actual  =            $42,250

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