Onyx Company Has Prepared a Static Budget at the Beginning

question 151

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 fixed expenses.

• A)$2,970 U
• B)$4,500 F
• C)$380 U
• D)$0

---

Definitions:

Independent Variable

In research, a variable that is manipulated or changed to observe its effects on a dependent variable.

Experimental Method

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Independent Variable

The variable in an experiment that is manipulated to observe its effect on a dependent variable.

Positive Correlation Coefficient

A statistical measure indicating that as one variable increases, the other variable tends to increase as well.