The following static budget performance report was prepared for Chip Manufacturing for July.

Using a flexible budget, calculate Chip’s total flexible budget variance for variable costs.

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Actual Static Results Budget Variance Sales units Sales dollars. Variable costs.. Fixed costs. 100,000 90,000 10,000 F $190,000 $180,000 $10,000 F 125,000 108,000 17,000 U 50,000 45.000 5,000 U Operating income $ 15,000 $ 27,000 $12,000 U