Answer the following questions using the information below:
The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Wooden Figurines Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results.

-The flexible budget will report ________ for the fixed costs.
A)$50,500
B)$49,500 Favorable
C)$49,500
D)$1,000 Unfavorable

Question

Answer the following questions using the information below:
The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Wooden Figurines Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results.
    
-The flexible budget will report ________ for the fixed costs.
A)$50,500 
B)$49,500 Favorable 
C)$49,500 
D)$1,000 Unfavorable

Quizplus · Accepted Answer

The flexible budget will include the same fixed costs as the static budget, so the amount for fixed costs will remain at $49,500.

Answer the Following Questions Using the Information Below