Schooner Corporation used the following data to evaluate its current operating system. The company sells items for
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Question:
Actual | Budgeted | |
Units sold | 176,000 units | 185,000 units |
Variable costs | $1,081,000 | $1,294,000 |
Fixed costs | $802,000 | $777,000 |
What is the static-budget variance of operating income?
A.$33,000 favorable
B.$8,000 favorable
C.$188,000 unfavorable
D.$9,000 unfavorable
Schooner Corporation used the following data to evaluate its current operating system. The company sells items for $30 each and used a budgeted selling price of $30 per unit.
Actual | Budgeted | |
Units sold | 176,000 units | 183,000 units |
Variable costs | $1,082,000 | $1,290,000 |
Fixed costs | $805,000 | $770,000 |
What is the static-budget variance of variable costs?
A.$35,000 unfavorable
B.$208,000 unfavorable
C. $208,000 favorable
D.$35,000 favorable
Related Book For
Business Statistics a decision making approach
ISBN: 978-0133021844
9th edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
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