The static​ budget, at the beginning of the​ month, for Divine​ Décor Company,​ follows: Static​ budget: Sales​ volume: 1 comma 200 ​units; Sales​ price: $ 70 per unit Variable​ costs: $ 32 per​ unit; Fixed​ costs: $ 38 comma 000 per month Operating​ income: $ 7 comma 600 Actual​ results, at the end of the​ month, follows: Actual​ results: Sales​ volume: 990 ​units; Sales​ price: $ 75 per unit Variable​ costs: $ 35 per​ unit; Fixed​ costs: $ 34 comma 700 per month Operating​ income: $ 4 comma 900 Calculate the flexible budget variance for sales revenue.

Respuesta :

Answer:

$5,650 Favorable

Explanation:

The computation of flexible budget variance for sales revenue is given below:-

Flexible budget variance for sales revenue = Actual sales - Flexible budget sales

= (990 × $75) - (980 × $70)

= $74,250 - $68,600

= $5,650 Favorable

Therefore for computing the flexible budget variance for sales revenue we simply applied the above formula.