The Following Data Are for California Closets The Sales Activity Variance for Operating Income Is ________

question 3

Multiple Choice

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

The sales activity variance for operating income is ________.

• A) $14,000 Favorable
• B) $14,000 Unfavorable
• C) $16,000 Favorable
• D) $16,000 Unfavorable

---

Definitions:

Goal-Setting Process

A motivational technique involving the establishment of achievable, specific, and measurable objectives to enhance performance and focus.

Employees

Individuals who are hired to perform services or work for an organization or employer, typically in return for compensation.

Dual Factor Theory

Dual Factor Theory, also known as Herzberg's motivation-hygiene theory, proposes that job satisfaction and dissatisfaction arise from two separate sets of factors—motivation factors that lead to job satisfaction and hygiene factors that prevent dissatisfaction.

Hygiene Factors

According to Herzberg's two-factor theory, aspects of the work environment that can cause dissatisfaction if missing, such as salary, company policies, and working conditions, but do not necessarily motivate when improved.