Question
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)..................
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.
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