Refer to the previous question. What is the flexible budget variance for net income?

The use of high-quality raw materials is likely to result in a favorable efficiency variance and an unfavorable price variance.

For any actual level of output, the efficiency variance is the difference between actual quantity of input purchased and the budgeted quantity of input allowed to produce actual output, multiplied by the budgeted price.

For a capital budgeting project to be accepted the internal rate of return needs to exceed the required rate of return.

What is the direct materials flexible budget variance during September?

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Companies that use activity-based costing allocate direct materials and direct labor to cost objects in the same way as traditional costing systems.

Presented below are the production data for the first six months of the year for the mixed costs incurred by Cotton Company. Month Cost Units January  $4,890  4,100 February  $4,426  3,520 March  $6,730  5,200 April  $9,724  8,250 May  $5,900  4,900 June  $7,336  6,600 Cotton Company uses the high-low method to analyze mixed costs.What is the estimated total cost of producing 4,000 units?

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