Answer (A) is correct . The variable cost flexible budget variance is equal to the difference between actual variable costs and the product of the actual quantity sold and the budgeted unit variable cost ($180,000 ¡Â 6,000 = $30). Answer (B) is incorrect because The variance is favorable. Answer (C) is incorrect because The amount of the fixed cost variance is $4,000. Answer (D) is incorrect because The amount of the fixed cost variance is $4,000.
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