Onyx Décor Company Has Prepared a Static Budget at the Beginning

question 173

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: 2,000 units: Price: $50 per unit
Variable expense: $12 per unit: Fixed expenses: $25,000 per month
Operating income: $51,000
Actual results:
Sales volume: 1,800 units: Price: $58 per unit
Variable expense: $16 per unit: Fixed expenses: $35,000 per month
Operating income: $40,600
Calculate the flexible budget variance for variable expenses.

• A)$5,490 U
• B)$2,970 U
• C)$7,200 U
• D)$3,960 F

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Definitions:

Deceptive Advertising

Advertising that misleads consumers, either by unjustified claims concerning a product's performance or by failure to disclose relevant information concerning the product's composition or performance.

Federal Level

Pertaining to the national government, as opposed to state or local levels, involving laws, courts, and matters of country-wide importance.

Strict Liability

A legal doctrine holding an individual or entity responsible for their actions or products without the need to prove fault or negligence.

Unreasonably Dangerous

Describes a product or condition that poses a significant risk of injury to individuals under normal use or foreseeable misuse.