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:

Socialize Members

The process of teaching new group or organization members the norms, values, and behaviors that are expected of them.

Steps

A sequence of actions taken in order to achieve a particular end.

Ways

Refers to methods, approaches, or means by which something can be done or achieved.

Organizational Culture

The shared values, beliefs, and practices that characterize an organization and influence its members' behavior.