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Problem: Flexible Budget Variances - Funnie Flexible Inc.
Funnie Flexible Inc. has developed standard costs of $25.00 per unit for variable costs and budgeted annual fixed costs to be $210,000. The budgeted sales price per unit is $58.00, and atthis price management estimated sales to be 15,000 units. Actual results were disappointing, asonly 11,000 units were sold. Actual variable costs were $264,000 and fixed costs were $202,000.There was not any beginning or ending inventory. The actual average selling price per unit was$56.50.
Required:
1. Compute the flexible budget variance, sales volume variance, and static budget variance.
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