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 is the total flexible-budget variance (D)?
a. $120 unfavorable
b. $0
c. $680 favorable
d. $3,320 favorable
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