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Q1) Ranger Company produces men's ties. Budgeted and actual costs for March given below:

Cost

Budget at 2,500 units

Actual at 2,900 units

Direct materials

$55,000

$64,000

Direct labor

70,000

81,000

Fixed overhead

35,000

35,400

Considering increased sales, which cost or costs have a favourable variance?

i) None. All variances are unfavorable.

ii) All of the variances are favorable.

iii) Direct materials only

iv) Direct labor only

v) Fixed overhead only

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916746

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