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Question - At the start of 2020, X Company developed the following budgeted total cost function: $9.31X + $201,800, where X is number of units produced. Budgeted production for the year was 11,000 units.
It turned out that 11,900 units were produced in 2020, total variable costs were actually $118,524, and fixed costs were $180,374.
What was the 2020 flexible budget variance for fixed costs [a positive number means a favorable variance and a negative number means an unfavorable variance]?
What was the 2020 flexible budget variance for total variable costs [a positive number means a favorable variance and a negative number means an unfavorable variance]?
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