Zany Brainy Projected Current Year Sales of 50,000 Units at a Unit

question 148

Multiple Choice

Zany Brainy projected current year sales of 50,000 units at a unit sale price of $20.00. Actual current year sales were 55,000 units at $22.00 per unit. Variable costs were budgeted at $14.00 per unit and actually totaled $15.00 per unit. Budgeted fixed costs totaled $400,000, while actual fixed costs amounted to $420,000.
-What is the Zany Brainy's flexible budget variance for operating income?

• A) $65,000 favourable
• B) $65,000 unfavourable
• C) $35,000 unfavourable
• D) $35,000 favourable

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Definitions:

Jargon

Specialized language or terminology used by a particular group or profession, often difficult for outsiders to understand.

Budget

An estimate of income and expenditure for a set period of time.

Measurement Strategy

A plan or approach designed to quantify processes, outputs, or outcomes, enabling assessment and improvement.

Integrated

Describes systems or methods that are combined in order to function as a coherent whole, often referring to marketing strategies that use multiple channels cohesively.