Onyx Company Has Prepared a Static Budget at the Beginning

question 41

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 sales volume variance for variable expenses.

• A)$2,970 U
• B)$2,400 F
• C)$3,800 U
• D)$3,960 F

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Definitions:

Homeless

The state of lacking stable, permanent, and appropriate housing, resulting in living on the streets, shelters, or in temporary accommodations.

Underemployed Worker

A person who has a part-time job but would rather work full time or whose job is below his or her experience, skill, and educational level.

Experience

The knowledge or skill obtained from involvement in or exposure to events, situations, or activities over time.

Educational Levels

Educational levels refer to the stages of formal education an individual has completed, which can range from primary education to secondary education, and higher education such as college or university degrees.