Smith Corporation Has a $6,000 Favorable Flexible Budget Variance for January

question 72

Multiple Choice

Smith Corporation has a $6,000 favorable flexible budget variance for January. Which of the following statements is true, if January's flexible budget net operating income was $100,000?

• A) Smith's static budget must have showed a net operating income of $106,000.
• B) Smith's static budget must have showed a net operating income of $94,000.
• C) Smith's actual net operating income must have been $106,000.
• D) Smith's actual net operating income must have been $94,000.

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