ABC company prepared a master budget based on 100 budgeted sales units with a $100 sales price per unit, a variable cost per unit of $50, and $2,000 in total fixed cost. The actual sales quantity was 120 units, the actual sales price per unit was $90, and the actual total fixed cost was $2,500. When preparing a flexible budget, the operating income is: $3,500 $4,000 $2,800  $3,000

Prepare a flexible budget for Western.

The following information was drawn from the accounting records of Smith Company    Static Budget   Flexible Budget   Actual Results   Sales   $ 13,500         $ 19,000         $ 21,100       Cost of Goods Sold     (6,700 )         (8,600 )         (7,250 )     Gross Margin     6,800           10,400           13,850       Variable Cost     (2,700 )         (3,450 )         (4,350 )     Fixed Cost     (1,700 )         (1,700 )         (2,000 )     Net Income   $ 2,400         $ 5,250         $ 7,500         Based on this information the   Multiple Choice   variable operating cost volume variance is a $1,100 favorable variance.   variable operating cost flexible budget variance is a $900 unfavorable variance.   variable operating cost volume variance is a $900 favorable variance.   variable operating cost flexible budget variance is a $1,100 favorable variance.

Using the provided budgeted information for production of 10,000 and 15,000 units, prepare a flexible budget for 17,000 units. Production Expense A Expense B Expense C Expense A Expense B Expense C Total expenses Expenses Production and expense data 10,000 units $15,000 21,000 43,000 Flexible budget for 17,000 units 15,000 units 17,000 units $22,500 21,000 43,000