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

question 93

Multiple Choice

Onyx Company prepared a static budget at the beginning of the month. It's the end of the month and 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
-
Based on the above data, how much was the flexible budget variance for sales revenue?

• A) $5,490 U
• B) $5,490 F
• C) $3,960 U
• D) $3,960 F

---

Definitions:

If Statement

A conditional statement in programming that executes a block of code only if a specified condition is true.

Value Of Sum

An expression representing the total result of adding two or more numbers or variables together.

If Statement

A control flow statement that allows conditional execution of a block of code, depending on the truth value of an expression.

Value Of Y

This term refers to discovering or discussing the numerical or literal content assigned to the variable identified as 'Y'.