Calculate the variance based on a flexible budget, Accounting Basics

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Calculate the variance based on a flexible budget

Question:

Conrad Corporation has a budget to produce 2,000 units at a variable cost of $3 per unit, but actual production is 1,800 units with an actual cost of $3.20 per unit. Calculate the variance based on a flexible budget and determine whether it is favourable or adverse.

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Accounting Basics: Calculate the variance based on a flexible budget

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