Potter Company Has the Following Information Assume the Cost Driver of Product Costs Is Units of loss

question 89

Multiple Choice

Potter 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 the cost driver of product costs is units of production.What is the flexible budget variance for operating income?

• A) $5,000 Unfavorable
• B) $11,000 Unfavorable
• C) $16,000 Unfavorable
• D) $16,000 Favorable

---

Definitions:

Schizophrenia

A mental disorder characterized by distorted thinking, perceptions, emotions, and behaviors.

Dopamine

A neurotransmitter involved in controlling movement and posture, moderating mood, and affecting motivation and reward mechanisms in the brain.

Efferent Nerve Fibres

Nerve fibers that conduct signals away from the central nervous system to effector cells and organs, regulating their activity.

Central Nervous System

The primary information-processing center of the body, comprising the brain and spinal cord, responsible for processing and transmitting neural signals.