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Commerce · Q505

Costing

Graduate and Post Graduate · Commerce · question 505

Q505

If sales budget variance for operating income is 68000 and static budget amount is 19000, then flexible budget amount will be

A.
$47,000
B.
$57,000
C.
$87,000
Answer
D.
$97,000

Answer: Option C

Solution

Answer: Option C
Solution:
Flexible budget amount = Operating income + static budget
= 19000 = $87,000