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 will report ________ for the fixed costs.
A) $73,923
B) $31,000 Favorable
C) $31,000
D) $10,000 Unfavorable

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 will report ________ for the fixed costs.

The flexible budget will report ________ for the fixed costs.
A) $73,923 
B) $31,000 Favorable 
C) $31,000 
D) $10,000 Unfavorable

Quizplus · Accepted Answer

$31,000, given in the static budget

The Actual Information Pertains to the Third Quarter