Schooner Corporation Used the Following Data to Evaluate Its Current

question 15

Multiple Choice

Schooner Corporation used the following data to evaluate its current operating system. The company sells items for $25 each and used a budgeted selling price of $25 per unit.

What is the static-budget variance of variable costs?

• A) $36,000 favorable
• B) $36,000 unfavorable
• C) $204,000 favorable
• D) $204,000 unfavorable

---

Definitions:

Dividend

A portion of a company's earnings distributed to its shareholders, usually periodically.

Preferred Stock

A type of stock that provides dividends before common stock and has priority over common stock in the event of liquidation.

Annual Dividend

The total amount of dividends a company pays out to its shareholders in one fiscal year.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument as stated by the issuer.