Onyx Company Has Prepared a Static Budget at the Beginning

question 147

Multiple Choice

Onyx Company has prepared a static budget at the beginning of the month. At the end of the month, the following information has been retrieved from the records. Static budget:
Sales volume: 2,000 units: Price: $50 per unit
Variable expense: $12 per unit: Fixed expenses: $25,000 per month
Operating income: $51,000
Actual results:
Sales volume: 1,800 units: Price: $58 per unit
Variable expense: $16 per unit: Fixed expenses: $35,000 per month
Operating income: $40,600
Calculate the flexible budget variance for variable expenses.

• A)$5,490 U
• B)$2,970 U
• C)$7,200 U
• D)$3,960 F

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Definitions:

Old Age

A life stage characterized by advanced years, often accompanied by health decline and increased experience.

Aging

The process of becoming older, which is characterized by the gradual decline in physical and sometimes mental capacity, and the accumulation of life experiences.

Health-maintenance Approach

A strategy focusing on the prevention of illness and the maintenance of health through lifestyle practices and healthcare interventions.

Aging

The process of becoming older, a natural and inevitable phenomenon that involves several biological, psychological, and social changes.