The static budget, at the beginning of the month, for Wadsworth Company follows:

Static budget:
Sales volume: 2000 units; Sales price: $50.00 per unit
Variable costs: $14.00 per unit; Fixed costs: $25,100 per month
Operating income: $46,900

Actual results, at the end of the month, follows:
Actual results:
Sales volume: 1900 units; Sales price: $58.00 per unit
Variable costs: $16.5 per unit; Fixed costs: $34,000 per month
Operating income: $44,850

Calculate the flexible budget variance for operating income.
A) $3600 U
B) $3600 F
C) $1550 F
D) $15,200 F


C) $1550 F

Explanation:

Business

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