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

...............Static Budget .........Flexible Budget......... Actual Results

Sales........... $10,000 ........................$12,000............... $12,700

COGS ...........(6,000)......................... (7,200).................. (6,900)

................____________.......... _____________...........________

Gross Margin 4,000.......................... 4,800..................... 5,800

Variable Cost (2,000)..................... (2,400)................... (2,600)

Fixed Cost .. (1,0000).................... (1,000) ...................(1,300)

..................____________ ..........____________..... _______________

Net Income $1,000.......................... $1,400 .....................$1,900

Which of the following is correct?

A.cost of goods sold flexible budget variance is a $300 unfavorable variance.

B.cost of goods sold volume variance is a $1,200 unfavorable variance.

C.cost of goods sold flexible budget variance is a $1,200 favorable variance.