The Static Budget,at the Beginning of the Month,for Bob's Deep $\$ 50.00$

question 84

Multiple Choice

The static budget,at the beginning of the month,for Bob's Deep Sea Fishing Company follows:Static budget:
Sales volume: 2,000 units; Sales price: $\$ 50.00$ per unit
Variable costs: $\$ 14.00$ per unit; Fixed costs: $\$ 25,200$ per month
Operating income: $\$ 46,800$

Actual results, at the end of the month, follows:
Actual results:
Sales volume: 1,900 units; Sales price: $\$ 59.00$ per unit
Variable costs: $\$ 16$ per unit; Fixed costs: $\$ 34,300$ per month
Operating income: $\$ 47,400$
Calculate the flexible budget variance for operating income.

• A)$3,600 U
• B)$3,600 F
• C)$4,200 F
• D)$17,100 F

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Definitions:

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