Answer the Following Questions Using the Information Below:
as Part

question 132

Multiple Choice

Answer the following questions using the information below:
As part of the budgeting process,Lillee's Petanque Company developed the following static budget for August.Lillee is in the process of preparing the flexible budget and understanding the results.The actual results are for the month of August.
$\begin{array}{lrlr}&\text { Actual } & \text { Flexible } & \text { Static } \\&\text { Results } & \text { Budget } & \text { Budget }\\\text { Sales volume (in units) } & 20000 &\underline{\quad\quad} & 25000 \\& & & \\\text { Sales revenues } & \$ 1000000 & \$ & \$ 1250000 \\\text { Variable costs } & \underline{512000} & \$ \underline{\quad\quad}& \underline{600000} \\& & & \\ \text { Contribution margin } & 488000 & \$ & 650000 \\& & &\\\text { Fixed costs } & 458000 & \$ \underline{\quad\quad}& 450000 \\\text { Operating profit } & \$ 30000 & \$ \underline{\quad\quad}& \$ 200000\end{array}$
-The flexible-budget variance for variable costs is:

• A)$32 000 unfavourable.
• B)$32 000 favourable.
• C)$120 000 unfavourable.
• D)$120 000 favourable.

---

Definitions:

Medicaid

A public health insurance program in the United States for individuals and families with low income and limited resources.

Low-Income People

Individuals or families who earn income significantly below the median levels for their geographical area, often leading to financial hardships.

Dependent Children

Minors who rely on adults, usually their parents or guardians, for financial support and care.

Health Insurance

A form of insurance coverage that pays for medical and surgical expenses incurred by the insured.