The Static Budget,at the Beginning of the Month,for Vintage Wine

question 86

Multiple Choice

The static budget,at the beginning of the month,for Vintage Wine Company follows: Static budget:
Sales volume: 2000 units; Sales price: $50.00 per unit
Variable costs: $13.00 per unit; Fixed costs: $25,500 per month
Operating income: $48,500
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 1900 units; Sales price: $58.50 per unit
Variable costs: $16.00 per unit; Fixed costs: $34,300 per month
Operating income: $46,450
Calculate the flexible budget variance for variable costs.

• A) $30,400 U
• B) $1650 U
• C) $5700 U
• D) $24,700 F

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Definitions:

Situational Attribution

Attributing a behavior to external factors or the situation in which the behavior occurred.

Personalism

Behaviour that appears to be directly intended to benefit or harm oneself rather than others.

Causal Schemata

Experience-based beliefs about how certain types of causes interact to produce an effect.

Internal Cause

An explanation for behavior or events that attributes their origin to factors within the person, such as traits, feelings, or abilities.