Ring Corporation Used the Following Data to Evaluate Their Current

question 30

Multiple Choice

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

Required:
Compute the static-budget variance of revenues,the static-budget variance of variable costs,and the static-budget variance of operating income.

• A)$225,000 U;$500,000 F;$236,000 F
• B)$226,000 U;$510,000 F;$237,000 F
• C)$225,000 F;$500,000 U;$236,000 U
• D)$226,000 F;$500,000 U;$236,000 U
• E)$227,000 F;$480,000 F;$239,000 F

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Definitions:

Business Cycle

The fluctuation in economic activity that an economy experiences over a period of time, marked by phases of expansion and contraction.

Mercantilism

An economic theory and practice where government regulation of a nation's economy is used to increase state power at the expense of rival national powers.

Laissez-faire

Laissez-faire is an economic philosophy advocating minimal governmental intervention in the marketplace and the economic activities of individuals and businesses.

Precious Metals

Metals of high economic value, often used as an investment or industrial commodity, including gold, silver, platinum, and palladium.