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Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system. The...

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Accounting

Static and Flexible Budgets
Graham Corporation used the following data to evaluate its currentoperating system. The company sells items for $10 each and used abudgeted selling price of $10 per unit.

ActualBudgeted
Units sold794,000800,000
Variable costs1,745,0002,000,000
Fixed costs1,420,0001,375,000

a. Prepare the actual income statement, flexible budget, andstatic budget.

Do not use negative signs with any of your answers below.

Actual ResultsFlexible BudgetStatic Budget
Units soldAnswerAnswerAnswer
RevenuesAnswerAnswerAnswer
Variable costsAnswerAnswerAnswer
Contribution marginAnswerAnswerAnswer
Fixed costsAnswerAnswerAnswer
Operating incomeAnswerAnswerAnswer

For questions b., c., and d., do not use negative signs withyour answers. Select either U for Unfavorable or F for Favorableusing 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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