Prevo Products Inc

Multiple Choice

Prevo Products Inc.has a $15 000 unfavourable flexible budget variance for July.If July's actual net income was $300 000,which of the following statements is true?

A) Prevo's static budget must have showed net income of $315 000.
B) Prevo's static budget must have showed net income of $285 000.
C) Prevo's flexible budget must have showed net income of $315 000.
D) Prevo's flexible budget must have showed net income of $285 000.