The static budget, at the beginning of the month, for La Verne Company follows: Static budget:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The static budget, at the beginning of the month, for La Verne Company follows: Static budget: Sales volume: 2,100 units: Sales price: $57 per unit Variable cost: $14 per unit: Fixed costs: $26,000 per month Operating income: $64,300 Actual results, at the end of the month, follows: Actual results: Sales volume: 1,800 units: Sales price: $58 per unit Variable cost: $16 per unit: Fixed costs $35,000 per month Operating income: $40,600 Calculate the sales volume variance for variable costs. OA. $4,200 F OB. $12,900 U OC. $12,900 F OD. $300 U The static budget, at the beginning of the month, for La Verne Company follows: Static budget: Sales volume: 2,100 units: Sales price: $57 per unit Variable cost: $14 per unit: Fixed costs: $26,000 per month Operating income: $64,300 Actual results, at the end of the month, follows: Actual results: Sales volume: 1,800 units: Sales price: $58 per unit Variable cost: $16 per unit: Fixed costs $35,000 per month Operating income: $40,600 Calculate the sales volume variance for variable costs. OA. $4,200 F OB. $12,900 U OC. $12,900 F OD. $300 U
Expert Answer:
Answer rating: 100% (QA)
Sales Volume variance Flexible budget cost Static budge... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
Terry saves $50 at the beginning of each month for 16 years. Beginning 1 month after his last deposit, he intends to withdraw $375 per month. If interest is 6% compounded monthly, for how long can...
-
James deposited $150 at the beginning of each month for 2 years into his savings account. For the next 4 years he did not make any more deposits, leaving the money in the account. The bank charges 4%...
-
You pay $993 at the beginning of each month for rent. Instead, you are going to purchase a house. You are going to make a 14% down payment and the remainder will be paid through a 25 year mortgage...
-
On July 31, 2019, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a furniture wholesaler, are as follows: Prepare the July 31, 2019, closing entries for Serbian...
-
Trainor and Associates is a CPA firm that specializes in helping clients with complex tax problems. The firm charges its clients by applying a markup rate to job costs so that operating income is...
-
a bond had a modified duration of 7 and is priced at par with a ytm of 8%. what is its price (with a face value of 100) when the yield goes to 9.5%?
-
Could an include use case have a primary actor? Explain.
-
Chico Company allows its customers to return merchandise within 30 days of purchase. At December 31, 2016, the end of its first year of operations, Chico estimates future period merchandise returns...
-
During an experiment with moving sound sources, students notice a change in pitch. As a train approaches, the whistle's pitch appears higher, and as it moves away, the pitch seems lower. This change...
-
The Bulgarian lev is currently pegged to the euro. Using ISLM diagrams for Home (Bulgarian lev) and Foreign (Eurozone), illustrate how each of the following scenarios affects the Bulgarian lev....
-
Let () is a set of all function from to . Define addition and multiplication in () as follows: > For all f,g (), (f+g) : is a function defined with : (f+g)(x) = f(x) + g(x) for all x > For all...
-
Your firm only accepts projects with a discounted payback shorter than 3 years. Do you accept or reject the following project? Discount rate 2% Year Project D -$2000 1 $1345 2 $465 3 $195 $300
-
13) Starling Steel has 30,000 shares of participating preferred stock outstanding. The issue has a $50 par value and carries a 10 percent annual dividend. The preferred stockholders participate...
-
1. If a firm has borrowed $5m at a floating rate of LIBOR + 75 basis points (0.75%), and then enters into a swap to receive LIBOR and pay 6% fixed on $5m notional, what is the firm's effective...
-
Coles group (COL) shares have an annual average return of 14% and an annual return standard deviation of 35%. Returns are assumed to be normally distributed. Provide the following risk measures and...
-
Your supervisor has been given a quote from a consultant to cover the risk of an increase in interest rates, as your company is looking to borrow money in the future. Your supervisor is complaining...
-
Jeff lives in a small community in the Karoo. Last year the residents of the community decided that if a wild animal was roaming around, the first person to spot the animal would be given the...
-
Write the given system without the use of matrices. D) - ()- d (x sin t + 8 (2+ 1)
-
The accounting records of Galvin Architects include the following selected, unadjusted balances at March 31: Accounts Receivable, $1,100; Office Supplies, $1,000; Prepaid Rent, $1,000; Equipment,...
-
Prepare the statement of retained earnings for Drought Design Studio for the year ending December 31, 2016. The assets, liabilities, and equities of Drought Design Studio have the following balances...
-
Consider the December transactions for Crystal Clear Cleaning that were presented in Chapter 5. Crystal Clear uses the perpetual inventory system. Dec. 2 Purchased 475 units of inventory for $2,850...
-
Graph the discrete probability distribution given in Table 1 from Example 2. Approach In the graph of a discrete probability distribution, the horizontal axis represents the values of the discrete...
-
Compute the mean of the discrete random variable given in Table 1 from Example 2. Approach Find the mean of a discrete random variable by multiplying each value of the random variable by its...
-
Which of the following is a discrete probability distribution? Approach In a discrete probability distribution, the sum of the probabilities must equal 1, and all probabilities must be between 0 and...
Study smarter with the SolutionInn App