Conner Company Has the Following Information Assume Units of Output Are the Cost Driver for Product

question 96

Multiple Choice

Conner Company has the following information:
$\begin{array}{ll}\text { Actual operating loss at 5,000 units } & \$(11,000) \\\text { Budgeted operating income at 5,000 units } & \$ 5,000 \\\text { Budgeted operating income at 10,000 units } & \$ 12,000 \\\text { Planned level of operations } & 10,000 \text { units } \\\text { Actual level of operations } & 5,000 \text { units }\end{array}$
Assume units of output are the cost driver for product costs.What is the static budget variance for operating income?

• A) $11,000 Unfavorable
• B) $12,000 Unfavorable
• C) $23,000 Unfavorable
• D) $23,000 Favorable

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