Question
The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Paralith Incorporated had developed the following
The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Paralith 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) | 15,000 | 11,000 |
| Sales revenues | $245,000 | $ | $235,000 |
| Variable costs | 139,000 | $ ________ | 184,000 |
| Contribution margin | 106,000 | $ | 51,000 |
| Fixed costs | 42,000 | $ ________ | 31,000 |
| Operating profit | $64,000 | $ | $20,000 |
The flexible budget will report ________ for variable costs.
A. $45,000
B. $250,909
C. $184,000
D. $101,933
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Accounting and Auditing Research Tools and Strategies
Authors: Thomas Weirich, Thomas Pearson, Natalie Tatiana
9th edition
1119441915, 1119441919, 978-1-119-3737, 9781119373629 , 978-1119441915
