Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit. Units sold Variable costs Fixed costs Actual 400,000 Budgeted 430,000 $ 1,250,000 $ 1,500,000 $ 1,500,000 $ 1,290,000 Required Prepare the actual income statement, flexible budget, and static budget. a. b. What is the static-budget variance of revenues? C. What is the flexible budget variance for variable costs? d. What is the flexible budget variance for fixed costs? a. Units sold Revenues Variable costs Contribution margin Fixed costs Operating income b. Actual results Static budget Static budget variance C. Actual variable costs d. Flexible budget variable costs Flexible budget variance Actual fixed costs Flexible budget fixed costs Flexible budget variance Actual Results Flexible Budget Static Budget favorable/unfavorable