4th option: sales price flexible budget variance is a $3,000 favorable variance. The following information was drawn from the accounting records of Smith Company:| | Static Budget | Flexible Budget | Actual Results ||-----------------------------|---------------|-----------------|----------------|| **Sales** | $11,000 | $14,000 | $15,100 || **Cost of Goods Sold** | (6,200) | (7,600) | (7,000) || **Gross Margin** | 4,800 | 6,400 | 8,100 || **Variable Cost** | (2,200) | (2,700) | (3,100) || **Fixed Cost** | (1,200) | (1,200) | (1,500) || **Net Income** | $1,400 | $2,500 | $3,500 |**Based on this information, the question is:**Multiple Choice- [ ] Sales price flexible budget variance is a $4,100 unfavorable variance.- [ ] Sales price flexible budget variance is a $1,100 favorable variance.- [ ] Sales price flexible budget variance is a $4,100 favorable variance.

Variance is used by management to identify the gaps between expected results and actual results and…

The following information was drawn from the accounting records of Smith Company Static Budget Flexible Budget Actual Results Sales $11,000 $14,000 $15,100 Cost of Goods Sold (6,200) (7,600) (7,000) Gross Margin 4,800 6,400 8,100 Variable Cost (2,200) (2,700) (1,200) (3,100) Fixed Cost (1,200) $ 1,400 (1,500) $ 3,500 Net Income $ 2,500 Based on this information the Multiple Choice sales price flexible budget variance is a $4,100 unfavorable variance. sales price flexible budget variance is a $1,100 favorable variance. sales price flexible budget variance is a $4,100 favorable variance.

The following information was drawn from the accounting records of Smith Company Static Budget Flexible Budget Actual Results Sales $11,000 $14,000 $15,100 Cost of Goods Sold (6,200) (7,600) (7,000) Gross Margin 4,800 6,400 8,100 Variable Cost (2,200) (2,700) (1,200) (3,100) Fixed Cost (1,200) $ 1,400 (1,500) $ 3,500 Net Income $ 2,500 Based on this information the Multiple Choice sales price flexible budget variance is a $4,100 unfavorable variance. sales price flexible budget variance is a $1,100 favorable variance. sales price flexible budget variance is a $4,100 favorable variance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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