Answer the Following Questions Using the Information Below:
Barossa Valley

question 145

Multiple Choice

Answer the following questions using the information below:
Barossa Valley Wines used the following data to evaluate their current operating system.The company sells items for $10 each and used a budgeted selling price of $10 per unit.
$$\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\\text { Units sold } & 495000 \text { units } & 500000 \text { units } \\\text { Variable costs } & \$ 1250000 & \$ 1500000 \\\text { Fixed costs } & \$ 925000 & \$ 900000\end{array}$$
-What is the static-budget variance of revenues?

• A)$50 000 favourable
• B)$50 000 unfavourable
• C)$5000 unfavourable
• D)$5000 favourable

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Definitions:

Functional Currency

Functional currency is the currency of the primary economic environment in which an entity operates, and in which its financial statements are prepared.

Functional Currency

The main currency used by a business or unit in its day-to-day operations.

Exchange Rate

The price at which one currency can be exchanged for another, often fluctuating based on market conditions.