Business

Leandro

27 July, 13:24

Onyx Company has prepared a static budget at the beginning of the month. At the end of the month, the following information has been retrieved from the records.

Static budget:

Sales volume: 1,000 units: Prices: $70 per unit

Variable expense: $32 per units:

Fixed expenses: $37,500 per month

Operating income: $500

Actual results:

Sales volume: 990 units: Price $74 per unit

variable expenses:$35 per unit: Fixed expenses:$33,000 per month

Operating income: $5,610

Calculate the flexible budget variance for fixed expenses.

a.$4,500U

b. $4,500F

c. $0

d. $5,490