The following information was drawn from the accounting records of Smith Company Static Budget Flexible Budget Actual Results Sales $ 15,000 $ 22,000 $ 24,700 Cost of Goods Sold (7,000 ) (9,200 ) (7,400 ) Gross Margin 8,000 12,800 17,300 Variable Cost (3,000 ) (3,900 ) (5,100 ) Fixed Cost (2,000 ) (2,000 ) (2,300 ) Net Income $ 3,000 $ 6,900 $ 9,900 Based on this information the

Multiple Choice cost of goods sold flexible budget variance is a $1,300 unfavorable variance. cost of goods sold volume variance is a $1,300 favorable variance. cost of goods sold flexible budget variance is a $2,200 favorable variance. cost of goods sold volume variance is a $2,200 unfavorable variance