Reference no: EM132590480

The static budget, at the beginning of the month, for Wadsworth Company follows:
Static budget:

Sales volume: 2,000 units;

Sales price: $ 50 per unit

Variable costs: $13 per unit;

Fixed costs: $25,200 per month

Operating income: $48,800

Actual results, at the end of the month,follows:
Actual results:

Sales volume: 1,800 units;

Sales price: $58.50 per unit

Variable costs: $16.50per unit;

Fixed costs: $33,400 per month

Operating income:$42,200

Question 1: Calculate the flexible budget variance for operating income

Option 1: $15,300 F

Option 2: $7,400 F

Option 3: $800 F

Option 4: $7,400 U