Use the Information Below to Answer the Following Question(s)

question 172

Multiple Choice

Use the information below to answer the following question(s) .Bates Corporation used the following data to evaluate their current operating system.The company sells items for $10 each and used a budgeted selling price of $10 per unit.
-What is the static-budget variance of operating income?

• A)$175,000 favourable
• B)$195,000 unfavourable
• C)$225,000 favourable
• D)$200,000 unfavourable
• E)$200,000 favourable

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Definitions:

Factory Overhead

All the costs associated with operating a factory that are not directly tied to specific units of production, such as utilities, maintenance, and salaries of non-production staff.