Zhongfang Consumer Products Has a Small Car Division That Operates

Multiple Choice

Zhongfang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter. $\begin{array}{|l|r|r|c|l|l|l} \hline & {\text { Actual }} & \begin{array}{c}\text { Flexible } \\\text { Budget }\end{array} & \begin{array}{c}\text { Flexible } \\\text { Budget } \\\text { Variance }\end{array} & \text { U/F } & \text { \% Variance } & \text { U/F } \\\hline \text { Sales Revenue } & \$ 688,000 & \$ 700,000 & & & & \\\hline \text { Variable expenses } & 309,000 & 320,000 & & & \\\hline \text { Contribution margin } & 379,000 & 380,000 & & & \\\hline \text { Traceable fixed expenses } & 371,000 & 368,000 & & & & \\\hline \text { Division margin } & \$ 8,000 & \$ 12,000 & & & &\\\hline \end{array}$

How much is the percentage flexible budget variance for traceable fixed expenses?

A) 0.8 % F
B) 0.8 % U
C) 0.3 % U
D) 0.3 % F