What amounts are reported for revenues in the flexible-budget (A) and the static-budget (B), respectively?

ACCOUNTING

Multiple Choice

Peters’ Company manufacturers tires. Some of the company's data was misplaced. Use the following information to replace the lost data:





Actual

Results

Flexible-Budget

Variances

Flexible

Budget

Sales-Volume

Variances

Static

Budget

Units

sold

#225,000



#225,000



#206,250



Revenues

$84,160

$2,000 F

(A)

$2,800 U

(B)

Variable

costs

(C)

$400 U

$31,720

$4,680 F

$36,400

Fixed

costs

$16,560

$1,720 F

$18,280

0

$18,280

Operating

income

$35,480

(D)

$32,160

(E)

$30,280


What amounts are reported for revenues in the flexible-budget (A) and the static-budget (B), respectively?

a. $82,160; $79,360

b. $82,160; $84,960

c. $84,960; $88,960

d. $84,960; $83,360


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