MA50 Problem: Flexible Budget Variances - Funnie Flexible Inc.

MA50 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.