QUESTION 1

1. Use the following information to answer questions Q1 Q3.

   You are given the following details:

   	Actual Results	Static Budget
   Units sold	150,000	200,000
   Contribution margin Fixed costs Operating income	225,000 155,000 $ 70,000	260,000 150,000 $ 110,000

   The standard contribution margin per unit is $1.3.

   Requirement: Answer the following questions (Q1-Q3):

   Q1.a The fixed cost flexible budget variance is $ .

2. Q1.b The variance type in the question above is (put 1 if favorable, or 2 if unfavorable) ..

3. Q2.a The operating income sales volume variance is $

4. Q2.b The variance type for the question abive is (put 1 if favorable, or 2 if unfavorable) ..

5. Q3.a The operating income static budget variance is $

6. 3.b the variance type is (put 1 if favorable, or 2 if unfavorable) ..