Calculate the flexible budget variance for fixed costs. The static budget, at the beginning of the month,

Calculate the flexible budget variance for fixed costs.

Transcribed Image Text:

The static budget, at the beginning of the month, for Amira Company follows: Static budget: Sales volume: 1,000 units; Sales price: $70 per unit Variable costs: $32 per unit; Fixed costs: $36,100 per month Operating income: $1,900 Actual results, at the end of the month, follows: Actual results: Sales volume: 980 units; Sales price: $74 per unit Variable costs: $35 per unit; Fixed costs: $34,500 per month Operating income: $3,720 The static budget, at the beginning of the month, for Amira Company follows: Static budget: Sales volume: 1,000 units; Sales price: $70 per unit Variable costs: $32 per unit; Fixed costs: $36,100 per month Operating income: $1,900 Actual results, at the end of the month, follows: Actual results: Sales volume: 980 units; Sales price: $74 per unit Variable costs: $35 per unit; Fixed costs: $34,500 per month Operating income: $3,720

Answer rating: 100% (QA)

1 Calculate the flexible budget amount for fixed costs Fixed Costs 36100 per month Actual Sal... View the full answer