The following information was drawn from the accounting records of Smith Company

	Static Budget	Flexible Budget	Actual Results
Sales	$ 14,500	$ 21,000	$ 23,500
Cost of Goods Sold	(6,900)	(9,000)	(7,350)
Gross Margin	7,600	12,000	16,150
Variable Cost	(2,900)	(3,750)	(4,850)
Fixed Cost	(1,900)	(1,900)	(2,200)
Net Income	$ 2,800	$ 6,350	$ 9,100

Based on this information the

Multiple Choice

variable operating cost flexible budget variance is a $1,300 favorable variance.

variable operating cost volume variance is a $1,100 favorable variance.

variable operating cost volume variance is a $1,300 favorable variance.

variable operating cost flexible budget variance is a $1,100 unfavorable variance.