-Refer to Figure 11-2. What is the flexible budget variance for July?
A) $12,000 U
B) $12,000 F
C) $29,000 U
D) $29,000 F
E) None of these.

Question

-Refer to Figure 11-2. What is the flexible budget variance for July?
A) $12,000 U 
B) $12,000 F 
C) $29,000 U 
D) $29,000 F 
E) None of these.

Quizplus · Accepted Answer

The flexible budget variance is the difference between the actual results and the flexible budget. The flexible budget is based on the actual level of activity, so it should be very close to the actual results. In this case, the actual results are $29,000 and the flexible budget is $17,000. The difference between these two numbers is $12,000, which is the flexible budget variance.