The Static Budget,at the Beginning of the Month,for Bob's Deep

question 181

Multiple Choice

The static budget,at the beginning of the month,for Bob's Deep Sea Fishing Company follows: Static budget:
Sales volume: 2,000 units; Sales price: $50.00 per unit
Variable costs: $13.00 per unit; Fixed costs: $25,200 per month
Operating income: $48,800
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 1,900 units; Sales price: $58.50 per unit
Variable costs: $16.5 per unit; Fixed costs: $33,400 per month
Operating income: $46,400
Calculate the flexible budget variance for operating income.

• A) $3,700 U
• B) $3,700 F
• C) $1,300 F
• D) $16,150 F

---

Definitions:

Decimal Equivalents

Numerical values expressed in decimal form that correspond to fractions or percentages.

Percent Equivalents

Representations of fractions or ratios as percentages, useful for comparing proportions.

Evaluate

To assess or determine the value, significance, or condition of something typically in a detailed and systematic way.

Evaluate

The process of examining something to determine its value or worth, often in a careful and systematic way.