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amanam amanam
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5 years ago
Underwater Sports Equipment Company projected sales of 78,000 units at a unit sales price of $12 for the year. Actual sales for the year were 76,000 units at $15 per unit. Variable costs were budgeted at $3 per unit, and the actual amount was $6 per unit. Budgeted fixed costs totaled $385,000, while actual fixed costs amounted to $446,000. What is the flexible budget variance for variable costs?
A) $234,000 unfavorable
B) $228,000 unfavorable
C) $228,000 favorable
D) $234,000 favorable
Textbook 
Horngren's Accounting

Horngren's Accounting


Edition: 11th
Authors:
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wrote...
#1
5 years ago
 B
Explanation:  B) Flexible budget variance for variable costs = 76,000  ($6 - $3) = $228,000 unfavorable
amanam Author
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#2
5 years ago
You're an excellent tutor!
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