Onyx Company Has Prepared a Static Budget at the Beginning

question 33

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: 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
Calculate the sales volume variance for revenues.

• A)$4,500 U
• B)$700 U
• C)$380 U
• D)$3,960 F

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Definitions:

Metric Classification

The process of categorizing metrics based on their attributes or purposes, such as performance metrics, financial metrics, or operational metrics.

Supply Chain Council

An organization focused on improving supply chain efficiency and effectiveness through the development and promotion of best practices and standards.

SCOR Model

A framework developed by the Supply Chain Council that describes the business activities associated with satisfying a customer's demand, which include plan, source, make, deliver, return, and enable.

Scorecards

Tools used to measure and report on the performance of an organization, department, or process against predefined goals.