Onyx Company Has Prepared a Static Budget at the Beginning

question 123

Multiple Choice

Onyx Company has prepared a static budget at the beginning of the month. At the end of the month, 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 operating income.

• A)$4,500 U
• B)$7,600 U
• C)$2,800 U
• D)$5,490 F

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Definitions:

Fair Credit Reporting Act

A federal law designed to promote accuracy, fairness, and the privacy of information in the files of consumer reporting agencies.

Credit History

A record of a person's or company's past borrowing and repaying behavior, including information about late payments and bankruptcy.

Background Checks

The process of verifying the personal, financial, and criminal records of an individual, often conducted by employers.

Reasonable Accommodation

A modification or adjustment to a job, work environment, or the way things are usually done, that enables an individual with a disability to apply for a job, perform job functions, or enjoy benefits and privileges of employment.