Business, 21.03.2020 08:55 dbzrules02

Johnson Construction Materials Company has a sales office that sells concrete culvert pipes to property developers. The sales office is a revenue center and prepares a monthly responsibility report. The following information is provided.
Product Type Actual Sales Revenue Flexible Budget Variance U/F Flexible Budget Sales Volume Variance U/F Static Budget
40 inch $31,700 $30,000 $40,800
36 inch long 40,200 42,200 33,000
36 inch short 36,000 33,100 31,100
32 inch 19,100 20,900 28,000
What is the flexible budget variance for the 40-inch pipe?
a. $1, 700 U
b. $10, 800 F
c. $10, 800 U
d. $1, 700 F

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