The actual information pertains to the third quarter. As part of the budgeting p

Question

The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of
Wooden Figurines Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the
process of preparing the flexible budget and understanding the results.
Actual Flexible Static
Results Budget Budget
Sales volume (in units) 13,000 ______12,000
Sales revenues $257,500 _______ $250,000
Variable costs 154,000 ________ 175,000
Contribution margin 103,500 ________ 75,000
Fixed costs 50,500 $ ________ 49,500
Operating profit $ 53,000 $_________ $ 25,500
9) The flexible budget will report ________ for variable costs.
A) $154,000 B) $175,000 C) $13,583 D) $189,583
9)
10) The flexible budget will report ________ for the fixed costs.
A) $49,500 Favorable B) $49,500
C) $1,000 Unfavorable D) $50,500

Explanation / Answer

175000/12000= $ 189 583 The flexible budget will report ___$ 189 583_____ for variable costs

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