The Static Budget,at the Beginning of the Month,for Vintage Wine

question 86

Multiple Choice

The static budget,at the beginning of the month,for Vintage Wine Company follows: Static budget:
Sales volume: 2000 units; Sales price: $50.00 per unit
Variable costs: $13.00 per unit; Fixed costs: $25,500 per month
Operating income: $48,500
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 1900 units; Sales price: $58.50 per unit
Variable costs: $16.00 per unit; Fixed costs: $34,300 per month
Operating income: $46,450
Calculate the flexible budget variance for variable costs.

• A) $30,400 U
• B) $1650 U
• C) $5700 U
• D) $24,700 F

---

Definitions:

Spain's Monopoly

Refers to the exclusive control and trade privileges Spain held over its overseas colonies, particularly in the Americas, during the 16th to 18th centuries.

Political Stability

The condition of a nation or state in which it operates effectively without significant civil disorder, government dysfunction, or political unrest.

Sir Walter Raleigh

An English adventurer, writer, and courtier of the late 16th and early 17th centuries, known for his exploration of America and attempts to establish colonies.