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Clementine Company makes skateboards. They prepare master and flexible budgets and then perform variance analysis after the budget plan period elapses. Their data is as follows: Budget Actual Selling price per unit $109 $103 Variable cost per unit $59 $55 Quantity sold 948 935 What is the Clementine's flexible budget variance for VARIABLE COSTS? If the variance is unfavorable put a minus sign in front of your answer. Enter your answer without commas or decimals.

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Answer:

$3,740 favorable

Explanation:

The computation of the flexible budget variance for VARIABLE COSTS is shown below:

= Standard variable cost - actual variable cost

where,

Standard variable cost is

= 935 units × $59

= $55,165

And, the actual cost is

= 935 units × $55

= $51,425

So the  flexible budget variance for variable cost is

= $55,165 - $51,425

= $3,740 favorable

Since the standard cost is more than the actual cost which leads to favorable variance

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