Onyx Décor Company Has Prepared a Static Budget at the Beginning

question 6

Multiple Choice

Onyx Décor 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 revenues.

• A)$4,500 U
• B)$700 U
• C)$380 U
• D)$3,960 F

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Definitions:

Voucher Number

A unique identification code assigned to each transaction or invoice in an accounting system.

Vouchers Payable

An accounting term that refers to accounts payable obligations for which vouchers have been created but not yet paid.

Unpaid Voucher File

A file or record keeping system that tracks invoices and vouchers that have not yet been paid by the company.

Sales Discounts

Reductions in the price of goods sold, offered to customers as an incentive to either prompt payment or increase sales volume.