The Carolina Rubber Products Company has completed the flexible budget analysis for the second quarter,which is as given below.
-Which of the following statements would be a correct interpretation of the flexible budget variance for variable expenses?

Question

The Carolina Rubber Products Company has completed the flexible budget analysis for the second quarter,which is as given below.  
-Which of the following statements would be a correct interpretation of the flexible budget variance for variable expenses?

Quizplus · Accepted Answer

The flexible budget variance for variable expenses represents the difference between the actual variable cost and the budgeted variable cost. An increase in variable cost per unit would result in a higher flexible budget variance, indicating that the actual variable cost per unit was higher than the budgeted cost per unit. Therefore, option B is the correct interpretation of the flexible budget variance for variable expenses. Options A, C, and D are not related to variable expenses.

The Carolina Rubber Products Company Has Completed the Flexible Budget