The Static Budget,at the Beginning of the Month,for Wadsworth Company

question 121

Multiple Choice

The static budget,at the beginning of the month,for Wadsworth Company follows: Static budget:
Sales volume: 2000 units; Sales price: $50.00 per unit
Variable costs: $14.00 per unit; Fixed costs: $25,100 per month
Operating income: $46,900
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 1900 units; Sales price: $58.00 per unit
Variable costs: $16.5 per unit; Fixed costs: $34,000 per month
Operating income: $44,850
Calculate the flexible budget variance for operating income.

• A) $3600 U
• B) $3600 F
• C) $1550 F
• D) $15,200 F

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Definitions:

Upper Confidence Bound

The upper limit of a confidence interval, indicating the maximum value within which a population parameter is expected to lie with a certain probability.

Population Proportions

The ratio of members in a population that have a particular attribute to the total number of members in the population.

Z-Value

A measure that describes how far a data point is from the mean, expressed in standard deviations.

Heart Beats

The rhythmic contraction and expansion of the heart, representing each cycle during which the heart pumps blood through the circulatory system.