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The budgeted and actual results of Powers Inc. for the month of...

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Accounting

The budgeted and actual results of Powers Inc. for the month of June were as follows. The company uses a marginal costing system. There were no opening and closing inventories.
Static Budget
Actual Results
Sales & Production
2,500 units
2,000 units
$
$
$
$
Sales
60,000
46,000
Direct materials
10,000
9,500
Direct labour
12,500
9,000
Maintenance
5,000
4,500
Depreciation
5,000
3,500
Rent & Rates
7,000
6,000
Total Costs
39,500
32,500
Profit/Loss
20,500
13,500
The following information relates to cost behaviour: Maintenance is a variable cost; Depreciation, and Rent and Rates are fixed costs.
What are the Flexible Budgets Profit/Loss, and the related Variance when compared to the Actual Results Profit?
Question 20Select one:
A.
$13,500 and $500(F)
B.
$13,500 and $500(A)
C.
$14,000 and $500(A)
D.
$14,000 and $3,500(F)

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