The Static Budget,at the Beginning of the Month,for Keats Company $\$ 52.00$

question 105

Multiple Choice

The static budget,at the beginning of the month,for Keats Company follows: Static budget:
Sales volume: 2,100 units; Sales price: $\$ 52.00$ per unit
Variable costs: $\$ 12.00$ per unit; Fixed costs: $\$ 26,000$ per month
Operating income: $\$ 58,000$

Actual results, at the end of the month, follows:
Actual results:
Sales volume: 1,850 units; Sales price: $\$ 59.00$ per unit
Variable costs: $\$ 18.00$ per unit; Fixed cost: $\$ 37,000$ per month
Operating income: $\$ 38,850$
Calculate the sales volume variance for operating income.

• A)$9,150 U
• B)$250 F
• C)$10,000 U
• D)$10,000 F

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Definitions:

Globalization

The method through which companies or different entities gain international impact or begin to function globally, resulting in a greater linkage among global economies, cultures, and communities.

Proponents

Individuals or groups who support a particular idea, policy, or project.

Opponents

Opponents are individuals or groups who are in competition against each other or who hold differing views or positions on a particular issue.

Conceptualization

The process of defining and detailing abstract concepts and ideas, making them clearer and more accessible for discussion or analysis.