5. If an actual result is $5500 and corresponding amount of flexible budget on basis of actual level of output is $3500, then flexible budget variance will be

A. $2,500
B. $5,500
C. $3,500
D. $2,000
✅ The correct answer is option D.
Flexible budget variance = Actual result – Flexible budget
= $5500 – $3500 = $2,000.

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