Reference no: EM132590470

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

Sales volume: 1,300 units;

Sales price: $71 per unit

Variable costs: $32 per unit;

Fixed costs: $37,600 per month

Operating income: $13,100

Actual results:

Sales volume: 960 units; Sales price: $75 per unit

Variable costs:$35 per unit; Fixed costs:$33,400per month

Operating income: $5,000

Question 1: Calculate the flexible budget variance for sales revenue

Option A) $3,840 U

Option B) $3,840 F

Option C) $5,160F

Option D) $5,160 U