The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department ofWooden Figurines Incorporated had developed the following static budget for the third quarter. Duck Decoy is in theprocess of preparing the flexible budget and understanding the results. Actual Flexible StaticResults Budget BudgetSales volume (in units) 13,000 12,000Sales revenues $257,500 $250,000Variable costs 154,000 175,000Contribution margin 103,500 75,000Fixed costs 50,500 $ 49,500Operating profit $ 53,000 $ $ 25,5009) The flexible budget will report for variable costs. A) $154,000B) $175,000C) $13,583D) $189,58310) The flexible budget will report for the fixed costs. A) $49,500 FavorableB) $49,500C) $1,000 UnfavorableD) $50,500