1) Fixed overhead costs include ________.

A. indirect materials

B. energy costs

C. the cost of sales commissions

D. leasing of machinery used in a factory

2) The actual information pertains to the month of June. As part of the budgeting process, Colonial Fencing Company developed the following static budget for September. Colonial is in the process of preparing the flexible budget and understanding the results.

The flexible budget for sales revenues will be?

A. $573,500

B. $610,000

C. $558,000

D. $612,000

Sales volume (in units) Sales revenues Variable costs Contribution margin Fixed costs Operating profit Actual Results Flexible Budget Static Budget 15,500 $558,000 300,000 $258,000 236,000 $22,000 17,000 $610,000 $ 256,000 $ $354,000 $ 243,000 $ $111,000 $