The following information was drawn from the accounting records of Smith Company Static Budget Flexible Budget Actual Results Sales $ 17,500 $ 27,000 $ 30,700 Cost of Goods Sold (7,500 ) (10,200 ) (7,650 ) Gross Margin 10,000 16,800 23,050 Variable Cost (3,500 ) (4,650 ) (6,350 ) Fixed Cost (2,500 ) (2,500 ) (2,800 ) Net Income $ 4,000 $ 9,650 $ 13,900 Based on this information the

Multiple Choice

variable operating cost volume variance is a $1,900 favorable variance.

variable operating cost flexible budget variance is a $1,700 unfavorable variance

. variable operating cost volume variance is a $1,700 favorable variance.

variable operating cost flexible budget variance is a $1,900 favorable variance.