Greenhouse Corporation Used the Following Data to Evaluate Their Current

question 70

Multiple Choice

Greenhouse Corporation used the following data to evaluate their current operating system.The company sells items for $12 each and had used a budgeted selling price of $13 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)$200,000 F;$8,000 F;$258,000 F
• B)$210,000 U;$8,100 U;$259,000 U
• C)$205,000 F;$8,500 F;$260,000 F
• D)$210,000 U;$9,250 U;$261,000 F
• E)$249,000 U;$9,750 U;$262,000 U

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Definitions:

Management Activity

The process of planning, organizing, directing, and controlling resources to achieve organizational objectives.

Planning

The process of setting objectives, determining approaches to achieve them, and devising strategies and actions to reach the desired outcomes.

Course of Action

A plan or method chosen to respond to or achieve a particular goal or problem.

Resources

Resources are assets, materials, and inputs needed by an organization or individual to produce goods or services.