This Question: 3 pts9 of 49 (o completeThis Test 150 pts poss The static budget,

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This Question: 3 pts9 of 49 (o completeThis Test 150 pts poss The static budget, at the beginning of the month, for Wadsworth Company follows: Static budget Sales volume: 2,000 units; Sales price: $50.00 per unit Operating income: $46,900 Actual results, at the end of the month, follows: Variable costs: $14.00 per unit, Fixed costs: $25,100 per month Actual results Sales volume: 1,900 units; Sales price: $58.00 per unit Variable costs: $16.5 per unit, Fixed costs: $34,000 per month Operating income: $44,850 Calculate the flexible budget variance for operating income. O A. $1,550 F 0 B. $15,200 F O C. $3,600 U O D. $3,600 F

Explanation / Answer

Calculation of Flexible Budget Variance

Particulars Amount Sales (1900*$58) - (1900*$50) $15200 (-) Variable cost (1900*$16.5) - (1900*$14) ($4750) (-) Fixed cost ($34000 - $25100) ($8900) Flexible Budget Variance $1550 F

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