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

question 70

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 flexible budget variance for operating income?

• A) $4,500 U
• B) $4,500 F
• C) $380 U
• D) $5,490 F

Appreciate the importance of job design and enrichment in enhancing employee motivation and satisfaction.

Understand the differences between Theory X, Theory Y, and Theory Z management approaches.

Comprehend the impact of research productivity incentives on faculty publication quantity and quality.

Recognize the genetic and environmental factors influencing job satisfaction.

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Definitions:

Sales Taxes Payable

Liability accounts that record the sales tax collected from customers on behalf of governmental authorities, to be paid in the future.

Cash Sales

Sales transactions where payment is made in cash at the time of purchase, without any delay.

Sales Taxes

Taxes imposed by governments on the sale of goods and services, typically calculated as a percentage of the sales price.