The Following Data Are for Pablo Corporation The Flexible Budget Variance for Operating Income Is ________

question 143

Multiple Choice

The following data are for Pablo Corporation:
$\begin{array} { l }&&&\text { Flexible Budget for}\\&\text { Actual }&\text { Static Budget }&\text { Actual Sales activity }\\\text { Units }&18,000&16,000&18,000\\\text { Sales }&\$360,000&\$320,000&\$360,000\\ \text {Variable costs }&234,000&192,000&216,000\\\text { Contribution margin }&\$126,000&\$128,000&\$144,000\\\text { Fixed costs }&76,000&80,000&80,000\\\text { Operating income }&\$50,000&\$48,000&\$64,000\end{array}$

The flexible budget variance for operating income is ________.

• A) $2,000 Favorable
• B) $2,000 Unfavorable
• C) $14,000 Favorable
• D) $14,000 Unfavorable

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Definitions:

Energy Balance

The relationship between energy intake through food and drink and energy expenditure through basal metabolism and physical activity, crucial for maintaining a healthy body weight.

Blood Glucose

The concentration of sugar in the bloodstream, which is critical for energy production in the body and is regulated by hormones like insulin.

Insulin Level

The concentration of insulin in the bloodstream, crucial for regulating blood glucose levels and metabolism.

Main Source of Energy

Generally refers to the primary fuels or resources that provide energy. For humans, this is often food, and for societies, it can be fossil fuels, nuclear power, or renewable sources like solar and wind.