Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating...
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Accounting
Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.
Actual
Budgeted
Units sold
685,000
700,000
Variable costs
1,850,000
2,100,000
Fixed costs
1,525,000
1,485,000
a. Prepare the actual income statement, flexible budget, and static budget.
Do not use negative signs with any of your answers below.
Actual Results
Flexible Budget
Static Budget
Units sold
Answer
Answer
Answer
Revenues
$Answer
$Answer
$Answer
Variable costs
Answer
Answer
Answer
Contribution margin
Answer
Answer
Answer
Fixed costs
Answer
Answer
Answer
Operating income
$Answer
$Answer
$Answer
For questions b., c., and d., do not use negative signs with your answers. Select either U for Unfavorable or F for Favorable using the drop down box next to each of your variance answers.
b. What is the static-budget variance of revenues?
$Answer AnswerFU
c. What is the flexible budget variance for variable costs?
$Answer AnswerFU
d. What is the flexible budget variance for fixed costs?
$Answer AnswerFU
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