Lincoln Corporation Used the Following Data to Evaluate Their Current

question 179

Multiple Choice

Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $18 each and used a budgeted selling price of $18 per unit.

What is the static-budget variance of operating income?

• A) $164,000 favorable
• B) $164,000 unfavorable
• C) $181,000 favorable
• D) $181,000 unfavorable

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Definitions:

American Southwest

A region in the United States defined by its arid and semi-arid climate, encompassing states such as Arizona, New Mexico, parts of California, Nevada, Utah, and Colorado.

Protestant

A member of the branch of Christianity that separated from the Roman Catholic Church during the Reformation.

Battle of Yorktown

The decisive victory by American and French forces over British troops in 1781, effectively ending the American Revolutionary War.

British Surrender

The act of British forces giving up in a conflict, notably referring to events like the 1781 surrender at Yorktown during the American Revolutionary War.