Answer the Following Questions Using the Information Below:
the Actual

question 177

Multiple Choice

Answer the following questions using the information below:
The actual information pertains to the month of September. As a part of the budgeting process, Twilith Fencing Company developed the following static budget for September. Twilith is in the process of preparing the flexible budget and understanding the results.
$\begin{array}{lrrr}&\begin{array}{r}\text { Actual } \\\text { Results }\end{array} & \begin{array}{r}\text { Flexible } \\\text { Budget }\end{array} & \begin{array}{r}\text { static } \\\text { Budget }\end{array}\\\text { Sales volume (in units) } & 12,000 & & 15,000 \\\text { Sales revenues } & \$ 600,000 & \$ & \$ 750,000 \\\text { Variable costs } & 307,200 & \$ & 360,000\\\text { Contribution margin }&292,800&\$&7390,000\\\text { Fixed costs } & 274,800& \$ & 270,000 \\\text { Operating profit } & \$ 18,000 & \$ & \$ 120,000\end{array}$
-The flexible budget will report ________ for variable costs.

• A) $245,760
• B) $360,000
• C) $288,000
• D) $384,000

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