A Company's Master Budget for October Is to Manufacture and Sell

question 37

Multiple Choice

A company's master budget for October is to manufacture and sell 30,000 units, for a total sales revenue of $270,000, total variable costs of $180,000, and total fixed costs of $24,000. The company actually manufactured and sold 32,000 units, and generated $45,000 of operating income in October.

The total flexible-budget (FB) variance for operating income in October, to the nearest dollar, was:

• A) $3,600 unfavorable.
• B) $6,000 unfavorable.
• C) $15,400 unfavorable.
• D) $21,000 unfavorable.
• E) $27,000 unfavorable.

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Definitions:

Conceptual Frameworks

Structures of concepts and theories that guide the collection and interpretation of data in research and practice.

Cognitive Developmental Stages

Phases identified by developmental psychologists that mark key periods in the growth of human cognition and intelligence from infancy through adulthood.

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Computational models designed to simulate the behavior of biological neural networks, used in machine learning and artificial intelligence.

Frontal Lobes

The part of the cerebral cortex covering the front part of the brain, involved in planning, reasoning, movement, emotions, and problem-solving.