Dorffman Inc

Multiple Choice

Dorffman Inc. has a $18,000 favorable flexible budget variance for May. Which of the following statements is true, if May's actual net operating income was $72,000?

A) Dorffman's static budget must have showed a net operating income of $54,000.
B) Dorffman's static budget must have showed a net operating income of $90,000.
C) Dorffman's flexible budget must have showed a net operating income of $54,000.
D) Dorffman's flexible budget must have showed a net operating income of $90,000.