The Static Budget,at the Beginning of the Month,for New England

question 117

Multiple Choice

The static budget,at the beginning of the month,for New England Furniture Company follows: Static budget:
Sales volume: 1000 units; Sales price: $71.00 per unit
Variable costs: $33.00 per unit; Fixed costs: $36,200 per month
Operating income: $1800
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 960 units; Sales price: $74.00 per unit
Variable costs: $35.00 per unit; Fixed costs: $35,000 per month
Operating income: $2440
Calculate the sales volume variance for fixed costs.

• A) $1920 U
• B) $1200 F
• C) $1520 U
• D) $0

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Definitions:

Franco-Prussian War

A conflict between the Second French Empire and the Kingdom of Prussia (with its German allies) in 1870-1871, leading to the unification of Germany and the downfall of Napoleon III.

Napoleon III

Emperor of the French from 1852 to 1870, known for his expansionist foreign policy, modernization of the French economy, and the establishment of the Second Empire.

French Economy

Refers to the economic structure and systems of France, including its agriculture, industry, services, and position within the global economy.

Alfred Dreyfus

A French Jewish artillery officer whose wrongful conviction for treason in 1894 sparked a significant political controversy, known as the Dreyfus Affair.