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Managerial Accounting

Eng Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 16,500 skeins and the actual level of activity was 16,400 skeins. The company's owner budgets for dye costs, a variable overhead cost, at 0.43 per skein. The actual dye cost last month was 7,538. In the company's flexible budget performance report for last month, what would have been the variance for dye costs?

443 U
486 U
45.963415 F
22.981707 F

Solution Summary

Solution contains calculation of variable overhead cost variance.

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