Reynolds Construction Materials Company Has a Sales Office That Sells

question 182

Multiple Choice

Reynolds Construction Materials Company has a sales office that sells concrete culvert pipes to property developers.The sales office is a revenue center and prepares a monthly responsibility report.The following information is provided. $$\begin{array}{l}\text { Revenue Center Responsibility Report }\\\begin{array} { | c | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Product } \\\text { Type }\end{array} & \begin{array} { c } \text { Actual } \\\text { Sales } \\\text { Revenue }\end{array} & \begin{array} { c } \text { Flexible } \\\text { Budget } \\\text { Variance }\end{array} & \text { U/F } & \begin{array} { c } \text { Flexible } \\\text { Budget }\end{array} & \begin{array} { c } \text { Sales } \\\text { Volume } \\\text { Variance }\end{array} & \text { U/F } & \begin{array} { c } \text { Static } \\\text { Budget }\end{array} \\\hline 40 \text { inch } & \$ 31,700 & & & \$ 30,000 & & & \$ 40,800 \\\hline 36 \text { inch long } & 40,200 & & & 42,200 & & & 33,000 \\\hline 36 \text { inch short } & 36,000 & & & 33,100 & & & 31,100 \\\hline 32 \text { inch } & 19,100 & & & 20,900 & & & 28,000 \\\hline\end{array}\end{array}$$ What is the flexible budget variance for the 40-inch pipe?

• A)$1700 U
• B)$10,800 F
• C)$10,800 U
• D)$1700 F

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