Thai Connection Ltd is a travel agency. They budget monthly costs of $50,000 plus $125 per customer served. They plan to serve 550 customers per month. During June they served 580 customers. Actual costs for June were $53,000 fixed costs and $65,000 variable costs. The flexible budget variance for fixed costs in June is:

Question

Quizplus · Accepted Answer

The flexible budget variance for fixed costs is the difference between the actual fixed costs and the budgeted fixed costs. The budgeted fixed costs were $50,000, and the actual fixed costs were $53,000, resulting in a $3,000 unfavourable variance.

Thai Connection Ltd Is a Travel Agency