FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Rogers Rods & Reels Ltd. manufactures and sells various types of fishing equipment. At the end of 2011,
Rogers had estimated for the production and sale of 15,000 bass fishing rods. Each rod has a standard
calling for 1.5 pounds of direct material at a standard rate of $800 per pound and 15 minutes of direct
labor time at a standard rate of $.18 per minute. During 2012, Rogers actually produced and sold 16,000
rods. These 16,000 rods had an actual direct materials cost of $179,200 (25,600 pounds at $7.00 per
pound) and an actual direct labor cost of $44,800 (224,000 minutes at $.20 per minute). Each rod sells
for $50.
Refer to the Rogers Rods & Reels Ltd. information above. What is Rogers' flexible budget variance?
О 11,200 F
О011,200 U
3,500 F
3,500 U
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