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The following information was drawn from the accounting records of Ashton Company. Budgeted Actual Sales $ 5,000 $ 6,000 Cost of Goods Sold (3,000) (3,600)

The following information was drawn from the accounting records of Ashton Company.

Budgeted

Actual

Sales

$ 5,000

$ 6,000

Cost of Goods Sold

(3,000)

(3,600)

Gross Margin

2,000

2,400

Variable Cost

(1,000)

(1,200)

Fixed Cost

(500)

(400)

Net Income

$ 500

$ 800

Based on this information Ashton Company has a

a. $200 favorable fixed operating cost variance

b. $200 unfavorable fixed operating cost variance

c. $100 favorable fixed operating cost variance

d. $100 unfavorable fixed operating cost variance

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