The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results.

The flexible-budget variance for variable costs is ________.
A) $2,210 unfavorable
B) $202,275 unfavorable
C) $89,270 favorable
D) $137,930 favorable

Question

The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results.

The flexible-budget variance for variable costs is ________.

The flexible-budget variance for variable costs is ________.
A) $2,210 unfavorable 
B) $202,275 unfavorable 
C) $89,270 favorable 
D) $137,930 favorable

Quizplus · Accepted Answer

$391,000 - (17,000 × $480,270 / 21,000) = $2,210 U

The Actual Information Pertains to the Month of June