The following information was drawn from the accounting records of Smith Company Static Budget Flexible Budget Actual Results Sales $ 10,000 $ 12,000 $ 12,700 Cost of Goods Sold (6,000 ) (7,200 ) (6,900 ) Gross Margin 4,000 4,800 5,800 Variable Cost (2,000 ) (2,400 ) (2,600 ) Fixed Cost (1,000 ) (1,000 ) (1,300 ) Net Income $ 1,000 $ 1,400 $ 1,900 Based on this information the:.a. cost of goods sold flexible budget variance is a $300 unfavorable variance.
b. cost of goods sold volume variance is a $300 favorable variance.
c. cost of goods sold flexible budget variance is a $1,200 favorable variance.
d. cost of goods sold volume variance is a $1,200 unfavorable variance.