Question
The actual information pertains to the month of September. As a part of the budgeting process, Twilith Fencing Company developed the following static budget for
The actual information pertains to the month of September. As a part of the budgeting process, Twilith Fencing Company developed the following static budget for September. Twilith is in the process of preparing the flexible budget and understanding the results.
ActualFlexibleStatic
ResultsBudgetBudget
Sales volume (in units)12,00015,000
Sales revenues$614,000$$780,000
Variable costs300,000$ _______377,250
Contributionmargin314,000$402,750
Fixed costs274,500$ _______268,000
Operating profit$39,500$$134,750
The flexible budget variance for the period would be:
Select one:
a.$80,550 F
b. $14,700 U
c.$14,700 F
d.$80,550 U
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