The Static Budget,at the Beginning of the Month,for Jabari Company

question 182

Multiple Choice

The static budget,at the beginning of the month,for Jabari Company follows: Static budget:
Sales volume: 2100 units; Sales price: $52.00 per unit
Variable costs: $12.00 per unit; Fixed costs: $26,500 per month
Operating income: $57,500
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 1900 units; Sales price: $58.00 per unit
Variable costs: $17.00 per unit; Fixed cost: $37,000 per month
Operating income: $40,900
Calculate the sales volume variance for operating income.

• A) $8600 U
• B) $200 F
• C) $8000 U
• D) $8000 F

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Definitions:

Subjective Standards

Criteria or guidelines that are based on personal opinions, feelings, or tastes, rather than objective, measurable indicators.

Contracts

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Offer

An expression of willingness to enter into a contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed.