Onyx Company Prepared a Static Budget at the Beginning of the Month

question 36

Multiple Choice

Onyx Company prepared a static budget at the beginning of the month. At the end of the month, the company is analyzing actual results versus budget using flexible budget methodology. Data are as follows:
Static budget: Sales volume: 1,000 units Price: $70 per unit
Variable expense: $32 per unit Fixed expenses: $37,500 per month
Operating income: $500
Actual results: Sales volume: 990 units Price: $74 per unit
Variable expense: $35 per unit Fixed expenses: $33,000 per month
Operating income: $5,610
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Based on the above data, how much was the sales volume variance for variable expenses?

• A) $2,970 U
• B) $320 F
• C) $380 U
• D) $3.960 F

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Definitions:

Initiative

The ability to assess and initiate things independently, often seen as a leadership quality.

Sense Of Identity

The way an individual perceives themselves; the sense of who they are.

Erikson

A developmental psychologist known for his theory on the psychosocial stages of human development.

Occupational Roles

Designations or positions held by individuals within a workplace, encompassing their responsibilities, duties, and the expectations of them in a professional setting.