Bhimani, Horngren,
Datar and Rajan,
Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012
Flexible budget Actual costs (Budgeted input incurred allowed for actual (Actual input Actual input Output achieved × Actual price) × Budgeted price × Budgeted price) Direct
(408 × €450)
(4,488 × 0.10 × €50) materials €20,196 €20,400
€22,440
€204 FF Price variance
Efficiency
variance Direct manufacturing (1,020
×
€18)
(4,488 × 0.25 × €18) labour €18,462 €18,360
€20,196
€102 U
€1,836 F Price variance
Efficiency variance Share with your friends: