Bear Creek Golf Center reported actual operating income for the current year as $65,000. The flexible budget operating income for actual volume is $58,000, while the static budget operating income is $59,000. What is the flexible budget variance for operating income?
A) $7000 favorable
B) $7000 unfavorable
C) $1000 unfavorable
D) $1000 favorable
A) $7000 favorable
Explanation: Flexible budget variance for operating income = Actual operating income - Expected operating income in the flexible
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Fill in the blank(s) with the appropriate word(s).
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Answer the following statement true (T) or false (F)
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