The Body Balance Fitness Company completed the flexible budget analysis for the second quarter,which is given below. \(\begin{array}{|l|c|c|c|c|c|c|c|}
\hline & \begin{array}{l}
\text { Actual } \
\text { Results }
\end{array} & \begin{array}{c}
\text { Flexible } \
\text { Budget } \
\text { Variance } \
\end{array} && \begin{array}{l}
\text { Flexible } \
\text { Budget }
\end{array} & \begin{array}{c}
\text { Sales } \
\text { Volume } \
\text { Variance }
\end{array} && \begin{array}{c}
\text { Static } \
\text { Budget }
\end{array} \
\hline \text { Units } & \underline{12,800}_{} & \underline{0} && \underline{12,800} & \underline{1000}& \underline{{F}} & \underline{11,800} \
\hline \text { Sales Revenue } & \$ 62,770 & \$2391&U& \$ 65,161 & \$ 5091 &{F} & \$ 60,070 \
\hline \text { Variable Costs } & \underline{27,540}_{} & \underline{150} &\underline{U} & \underline{27,390} & \underline{\$ 2140} &\underline{U} & \underline{25,250}\
\hline \text { Contribution Margin } & \$ 35,230 & \$ 2541 &{U} & \$ 37,771 & \$ 2951 &{F} & \$ 34,820 \
\hline \text { Fixed Costs } & \underline{34,280} & \underline{270 }&\underline{U} & \underline{34,010 }& \underline{\$ 0}& & \underline{34,010}_{} \
\hline \text { Operating Income/(loss) } & \underline{\$ 950} &\underline{ \$ 2811 }&\underline{U} &\underline{ \$ 3761} & \underline{\$ 2951 }&\underline{F} & \underline{\$810}\
\hline
\end{array}\) Which of the following statements would be a correct factor to explain the flexible budget variance for variable costs?

Question

Quizplus · Accepted Answer

The flexible budget variance for variable costs is unfavorable, indicating that the actual variable costs per unit were higher than expected.

The Body Balance Fitness Company Completed the Flexible Budget Analysis