What is the Flexible Budget Variance?

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Question description

Mikhail Building Supplies Co. has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has provided the following information.

How much is the flexible budget variance for the 40 inch pipe? Indicate if favorable or unfavorable.

40 inches; actual sales revenue $31,500; Flexible budget variance $30,000; Static budget $40,000, 

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