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Ohttps://www.mathxl.com/Student/PlayerTest.aspx?testid-176799090&centerwinayes; BUSI 1B Spring 2018 O'Dell Test: Chapter 23 Flexible Budgeting Test This Question: 2 pts The static budget, at the beginning of the month, for Vintage Wine Company follows Static budget: Sales volume: 2,000 units; Sales price: $50.00 per unit Variable costs: $13.00 per unit; Fixed costs: $25,500 per month Operating income: $48,500 Actual results, at the end of the month, follows: Actual results: Sales volume: 1,900 units; Sales price: $58.50 per unit Variable costs: $16.00 per unit; Fixed costs: $34,300 per month Operating income: $46,450 Calculate the flexible budget variance for variable costs. O A. $5,700 U O B. S30.400 u O C. $1,650 U O D. $24,700 F to select your answer

Explanation / Answer

ANS : A

Solution

In the Given Problem Given

Statetic Out Put : 2000 @ Variable cost per unit 13

Actual Output :1900 @ 16 Per Unit

The Flexible Budget Variable Cost Variance is = Statetic Variable cost - Actual Variable Cost

=(1900*13)-(1900-16)

= 24700-30400

= 5700 U

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