-Refer to Figure 11-1. What is the flexible budget variance for the first quarter?
A) $1,000 U
B) $23,000 U
C) $23,000 F
D) $1,000 F
E) None of these.

Question

-Refer to Figure 11-1. What is the flexible budget variance for the first quarter?
A) $1,000 U 
B) $23,000 U 
C) $23,000 F 
D) $1,000 F 
E) None of these.

Quizplus · Accepted Answer

The flexible budget variance is calculated by comparing the actual results to the flexible budget. The flexible budget adjusts based on actual activity levels. If the actual results are better than the flexible budget, the variance is favorable (F); if worse, it's unfavorable (U). Without seeing Figure 11-1, the correct answer cannot be determined from the provided information. However, based on the question's structure, assuming D) $1,000 F is correct implies that the actual results were $1,000 better than what the flexible budget anticipated, hence a favorable variance.