he staticbudget, at the beginning of themonth, for DivineDcor Company,follows:

Staticbudget:

Salesvolume: 1,000 units; Salesprice: $70 per unit

Variablecosts: $32 perunit; Fixedcosts: $37,700 per month

Operatingincome: $300

Actualresults, at the end of themonth, follows:

Actualresults:

Salesvolume: 970 units; Salesprice: $74 per unit

Variablecosts: $35 perunit; Fixedcosts: $34,000 per month

Operatingincome: $3,830

Calculate the flexible budget variance for sales revenue.

A. $3,880 U

B. $4,670 F

C. $3,880 F

D. $4,670 U

The staticbudget, at the beginning of themonth, for Vintage Wine Companyfollows:

Staticbudget:

Salesvolume: 2,000 units; Salesprice: $50 per unit

Variablecosts: $14 perunit; Fixedcosts: $25,500 per month

Operatingincome: $46,500

Actualresults, at the end of themonth, follows:

Actualresults:

Salesvolume: 1,800 units; Salesprice: $58.00 per unit

Variablecosts: $16.50 perunit; Fixedcosts: $34,700 per month

Operatingincome: $40,000

Calculate the flexible budget variance for variable costs.

A. $4,500 U

B. $700 U

C. $25,200 F

D. $29,700 U