Regier Company Had Planned for Operating Income of $10 Million

Multiple Choice

Regier Company had planned for operating income of $10 million in the master budget but actually achieved operating income of only $7 million.

A) The static-budget variance for operating income is $3 million favorable.
B) The static-budget variance for operating income is $3 million unfavorable.
C) The flexible-budget variance for operating income is $3 million favorable.
D) The flexible-budget variance for operating income is $3 million unfavorable.