Onyx Décor Company Has Prepared a Static Budget at the Beginning

question 91

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 sales volume variance for operating income.

• A)$2,970 U
• B)$5,490 F
• C)$7,600 U
• D)$5,110 F

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Definitions:

Material Handling Costs

Expenses associated with the moving, storing, and controlling materials and products.

Process-oriented

Focuses on the methods, steps, or procedures involved in accomplishing a task, emphasizing efficiency and effectiveness in operations.

Functional Groupings

The organization of elements or components based on their purpose, role, or function within a system or structure.

Fixed-position Layout

A manufacturing layout where the product remains stationary, and workers, materials, and equipment are moved to the product site.