Question - Loop 1604 Inc. has prepared a static budget at the beginning of the month. At the end of the month the following information is available:
Static Budget:
Sales volume: 1,000 units: Price $70 per unit
Variable costs: $32 per unit: Fixed costs: $37,500 per month
Operating Income: $500
Actual Results:
Sales volume: 990 units: Price $74 per unit
Variable costs: $35 per unit: Fixed costs: $33,000 per month
Operating Income: $5,610
Calculate the flexible budget variance for Sales Revenue.
$3,960 U
$5,490 U
$3,960 F
$5,490 F