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Central Table Inc. has prepared a static budget at the beginning of the month. At the end of the month the following information is available:
Static Budget:
Sales volume: 2,000 units: Price $50 per unit
Variable costs: $12 per unit: Fixed costs: $25,000 per month
Operating Income: $51,000
Actual Results:
Sales volume: 1,800 units: Price $58 per unit
Variable costs: $16 per unit: Fixed costs: $35,000 per month
Operating Income: $40,600
Question 1: Calculate the flexible budget variance for variable costs.
Group of answer choices
Option 1: $7,200 F
Option 2: $7,200 U
Option 3: $8,400 U
Option 4: $2,400 F
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