Answer the Following Questions Using the Information Below:
V8 Engineering

question 38

Multiple Choice

Answer the following questions using the information below:
V8 Engineering Pty used the following data to evaluate their current operating system.The company sells items for $14.50 each and had used a budgeted selling price of $15 per unit.
$$\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\\text { Units sold } & 206000 \text { units } & 200000 \text { units } \\\text { Variable costs } & \$ 965000 & \$ 950000 \\\text { Fixed costs } & \$ 53000 & \$ 50000\end{array}$$
-What is the static-budget variance of operating profit?

• A)$31 000 unfavourable
• B)$28 000 favourable
• C)$28 000 unfavourable
• D)$26 000 favourable

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Definitions:

Context

The circumstances or setting surrounding a particular event, statement, or idea, which can influence its meaning or effect.

Information

Data that has been organized and processed to provide meaning and context, making it useful for decision-making.

Knowledge

Information, understanding, or skill that one gets from experience or education.

Value

The importance, worth, or usefulness of something, often measured in terms of money, utility, or general desirability.