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

question 13

Essay

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
Using the format below, please prepare an income statement performance report:

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Definitions:

Customer Support Department

A sector within a company responsible for handling inquiries, complaints, and support requests from customers.

Customer Cost Analysis

The process of analyzing all costs associated with acquiring and serving customers to determine their profitability.

Time-Driven Activity-Based Costing

A costing method that assigns costs based on the time it takes to complete specific activities.

Customer Cost Analysis

An examination of the costs related to serving a customer or customer group, used to inform pricing strategies and customer relationship management.