Budgeted fixed costs totaled 400000 while actual fixed


Question - Zany Brainy projected current year sales of 50,000 units at a unit sale price of $20.00. Actual current year sales were 55,000 units at $22.00 per unit. Actual variable costs, budgeted at $14.00 per unit, totaled $15.00 per unit. Budgeted fixed costs totaled $400,000 while actual fixed costs amounted to $420,000. What is the flexible budget variance for operating income?

A. $65,000 favorable

B. $65,000 unfavorable

C. $35,000 unfavorable

D. $35,000 favorable

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Budgeted fixed costs totaled 400000 while actual fixed
Reference No:- TGS02868593

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)