Underwater Sports Equipment Company projected sales of 79,000 units at a unit sales price of $12 for the year
Actual sales for the year were 75,000 units at $14 per unit. Variable costs were budgeted at $3 per unit, and the actual amount was $5 per unit. Budgeted fixed costs totaled $387,000, while actual fixed costs amounted to $450,000. What is the flexible budget variance for variable costs?
A) $158,000 unfavorable
B) $150,000 unfavorable
C) $150,000 favorable
D) $158,000 favorable
B .B) Flexible budget variance for variable costs = 75,000 x ($5 - $3 ) = $150,000 unfavorable
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McLeod Fries, Inc has budgeted sales for June and July at $680,000 and $750,000, respectively
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