Q325
If an actual result is 5500 and corresponding amount of flexible budget on basis of actual level of output is 3500, then flexible budget variance will be
A.
$2,500
B.
$5,500
C.
$3,500
D.
$2,000
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Flexible budget variance = Actual result - Flexible budget = 3500 = $2,000.