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

---

Definitions:

National Origin

Refers to the country or geographic region where an individual was born or where their ancestors came from, often considered in anti-discrimination policies.

Essential Job Functions

The fundamental duties and responsibilities that are core to a particular job, which must be performed by the employee holding that position.

Bona Fide Seniority System

A legally recognized system within a workplace that rewards employees based on length of service, often affecting pay, benefits, and promotions.

Job Relatedness

The degree to which tests, selection procedures, and qualifications are relevant and appropriate for a particular job or role, ensuring that hiring practices are fair and valid.