As part of the budgeting process, the Duck Decoy Department of Para Company had developed the following
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As part of the budgeting process, the Duck Decoy Department of Para Company had developed the following static budget for the third quarter. The actual information pertains to the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results.
| Actual | Flexible | Static | |
| Results | Budget | Budget | |
| Sales volume (in units) | 11,000 | 10,000 | |
| Sales revenues | $238,000 | $ | $230,000 |
| Variable costs | 150,000 | $ ________ | 180,000 |
| Contribution margin | 88,000 | $ | 50,000 |
| Fixed costs | 36,000 | $ ________ | 35,000 |
| Operating profit | $52,000 | $ | $15,000 |
1. Compute the flexible-budget variance for variable costs.
2. The flexible-budget variance for variable costs is ________.
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