The IKS Company Management Controller provides you with information relating to its 2021 financial year:

	Amount
Variable costs (flexible budget)	50 000 $
Fixed costs (initial budget)	30 000 $

You are also provided with the following information:

• Adverse variance on variable costs: $5,000
• Favourable fixed cost yield variance: $5,000

The variable cost of the initial budget and the fixed cost of the actual budget must be:

Options for Question 17:

	Variable cost (initial budget) = 45,000 fixed cost (actual budget) = 25,000
	Variable cost (initial budget) = 35,000 fixed cost (actual budget) = 45,000
	Variable cost (initial budget) = 45,000 fixed cost (actual budget) = 35,000
	No answer is suitable
	Variable cost (initial budget) = 55,000 fixed cost (actual budget) = 25,000