Answer

E10-1A. Static and Flexible Budgets Graham Corporation used the following data to evaluate its current oper- ating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit. Actual pg. 10-41 Budgeted Units sold . . . 400,000 units 430,000 units Variable costs . . .. $1,250,000 $1,500,000 Fixed costs . . . . .. $1,500,000 $1,290,000 a. Prepare the actual income statement, flexible budget, and static budget. What is the static-budget variance of revenues? C. What is the flexible budget variance for variable costs? d. What is the flexible budget variance for fixed costs