The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Wooden Figurines Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results.

Actual Flexible Static

Results Budget Budget

Sales volume (in units) 13,000 12,000

Sales revenues $257,500 $ $250,000

Variable costs 154,000 $ ________ 175,000

Contribution margin 103,500 $ 75,000

Fixed costs 50,500 $ ________ 49,500

Operating profit $ 53,000 $ $ 25,500

A) The flexible budget will report ________ for variable costs.

		$154,000
		$189,583
		$175,000
		$13,583

B)The flexible budget will report ________ for the fixed costs.

		$50,500
		$49,500 Favorable
		$49,500
		$1,000 Unfavorable

C) The flexible-budget variance for variable costs is:

		$21,000 favorable
		$13,583 unfavorable
		$35,583 unfavorable
		$35,583 favorable