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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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