The Static Budget,at the Beginning of the Month,for Divine Décor

question 118

Multiple Choice

The static budget,at the beginning of the month,for Divine Décor Company,follows: Static budget:
Sales volume: 1500 units; Sales price: $70.00 per unit
Variable costs: $32.00 per unit; Fixed costs: $38,000 per month
Operating income: $19,000
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 990 units; Sales price: $75.00 per unit
Variable costs: $35.00 per unit; Fixed costs: $33,000 per month
Operating income: $6600
Calculate the flexible budget variance for sales revenue.

• A) $6980 U
• B) $6980 F
• C) $4950 U
• D) $4950 F

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Definitions:

Meiosis

A type of cell division that reduces the chromosome number by half, resulting in the production of haploid gametes or spores.

Strobilus

In certain plants, a conelike structure that bears spore-producing sporangia.

Rhizoids

Rhizoids are small, root-like structures found in non-vascular plants, fungi, and some protists that anchor them to surfaces and absorb nutrients.

Gametophyte

The sexual phase in the life cycle of plants and algae that produces gametes through mitosis.