Question
The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget
The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results. Actual Flexible Static Results Budget Budget Sales volume (in units) 18,000 22,000 Sales revenues $954,000 $ $1,166,000 Variable costs 414,000 $ 502,920 Contribution margin 540,000 $ 663,080 Fixed costs 274,800 $ 269,200 Operating profit $265,200 $ $393,880 The flexible - budget variance for variable costs is A. $128,680 favorable B. $88,920 favorable C. $2,520 unfavorable D. $200,680 unfavorable
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