The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Paralith 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.

The flexible-budget variance for variable costs is ________. (Round the final answer to the nearest dollar.)
A) $17,000 favorable
B) $33,400 unfavorable
C) $17,000 unfavorable
D) $63,000 favorable

Question

The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Paralith 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.

The flexible-budget variance for variable costs is ________. (Round the final answer to the nearest dollar.)

The flexible-budget variance for variable costs is ________. (Round the final answer to the nearest dollar.)
A) $17,000 favorable 
B) $33,400 unfavorable 
C) $17,000 unfavorable 
D) $63,000 favorable

Quizplus · Accepted Answer

[(10,000 × $184,000 / 8,000)] - $167,000 = $63,000 F

The Actual Information Pertains to the Third Quarter