Benefit Pillow Company projected sales of 76,000 units for the year at a unit sales price of $13.00. Actual sales for the year were 72,000 units at $20 per unit. Variable costs were budgeted at $4.50 per unit, and the actual variable cost was $4.75 per unit. Budgeted fixed costs totaled $377,000 while actual fixed costs amounted to $400,000. What is the flexible budget variance for operating income? A. $463,000 unfavorable OB. $235,000 unfavorable OC. $463,000 favorable D. $486,000 favorable CEED
Benefit Pillow Company projected sales of 76,000 units for the year at a unit sales price of $13.00. Actual sales for the year were 72,000 units at $20 per unit. Variable costs were budgeted at $4.50 per unit, and the actual variable cost was $4.75 per unit. Budgeted fixed costs totaled $377,000 while actual fixed costs amounted to $400,000. What is the flexible budget variance for operating income? A. $463,000 unfavorable OB. $235,000 unfavorable OC. $463,000 favorable D. $486,000 favorable CEED
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Benefit Pillow Company projected sales of 76,000 units for the year at a unit sales price of $13.00. Actual sales for the year were 72,000 units at $20 per unit.
Variable costs were budgeted at $4.50 per unit, and the actual variable cost was $4.75 per unit. Budgeted fixed costs totaled $377,000 while actual fixed costs
amounted to $400,000. What is the flexible budget variance for operating income?
A. $463,000 unfavorable
OB. $235,000 unfavorable
OC. $463,000 favorable
D. $486,000 favorable
CZER](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d86f545-c38a-4333-a435-2122acca3e7a%2F745744bf-3602-47b6-9730-244a35e321d2%2Fs5q68uw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Benefit Pillow Company projected sales of 76,000 units for the year at a unit sales price of $13.00. Actual sales for the year were 72,000 units at $20 per unit.
Variable costs were budgeted at $4.50 per unit, and the actual variable cost was $4.75 per unit. Budgeted fixed costs totaled $377,000 while actual fixed costs
amounted to $400,000. What is the flexible budget variance for operating income?
A. $463,000 unfavorable
OB. $235,000 unfavorable
OC. $463,000 favorable
D. $486,000 favorable
CZER
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