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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
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 | ||
Cost of Goods Sold | (6,000) | (7,200) | (6,900) | ||
Gross Margin | 4,000 | 4,800 | 5,800 | ||
Variable Cost | (2,000) | (2,400) | (2,600) | ||
Fixed Cost | (1,000) | (1,000) | (1,300) | ||
Net Income | $ 1,000 | $ 1,400 | $ 1,900 | ||
Based on this information the
Multiple Choice
variable operating cost volume variance is a $400 favorable variance.
variable operating cost flexible budget variance is a $200 unfavorable variance.
variable operating cost volume variance is a $200 favorable variance.
variable operating cost flexible budget variance is a $400 favorable variance.
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