Answer the following questions using the information below:
The actual information pertains to the month of September. As part of the budgeting process, Kriger Fencing Company developed the following static budget for September. Kriger is in the process of preparing the flexible budget and understanding the results.

-The flexible-budget variance for variable costs is:
A)$16,000 unfavorable
B)$60,000 unfavorable
C)$16,000 favorable
D)$60,000 favorable

Question

Answer the following questions using the information below:
The actual information pertains to the month of September. As part of the budgeting process, Kriger Fencing Company developed the following static budget for September. Kriger is in the process of preparing the flexible budget and understanding the results.
    
-The flexible-budget variance for variable costs is:
A)$16,000 unfavorable 
B)$60,000 unfavorable 
C)$16,000 favorable 
D)$60,000 favorable

Quizplus · Accepted Answer

The flexible-budget variance for variable costs is calculated by comparing the actual variable costs to the flexible budget variable costs. An unfavorable variance indicates that actual costs were higher than budgeted, and in this case, it is $16,000 unfavorable.

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