The budgeted and actual results of Powers Inc. for the month of June were as follows. The company uses a marginal costing system. There were no opening and closing inventories.

Static Budget

Actual Results

Sales & Production

$2,500$ units

$2,000$ units

$

$

$

$

Sales

$60,000$

$46,000$

Direct materials

$10,000$

$9,500$

Direct labour

$12,500$

$9,000$

Maintenance

$5,000$

$4,500$

Depreciation

$5,000$

$3,500$

Rent & Rates

$7,000$

$6,000$

Total Costs

$39,500$

$32,500$

Profit$/$Loss

$20,500$

$13,500$

The following information relates to cost behaviour: Maintenance is a variable cost; Depreciation, and Rent and Rates are fixed costs.

What are the Flexible Budget$$s Profit$/$Loss$,$ and the related Variance when compared to the Actual Results$$ Profit?

Question $20$Select one:

A$.$

$$13,500$ and $$500($F$)$

B$.$

$$13,500$ and $$500($A$)$

C$.$

$$14,000$ and $$500($A$)$

D$.$

$$14,000$ and $$3,500($F$)$