The Static Budget,at the Beginning of the Month,for Assembly Furniture

question 39

Multiple Choice

The static budget,at the beginning of the month,for Assembly Furniture Company follows: Static budget:
Sales volume: 1,000 units; Sales price: $70.00 per unit
Variable costs: $33.00 per unit; Fixed costs: $36,100 per month
Operating income: $900
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 990 units; Sales price: $74.00 per unit
Variable costs: $35.00 per unit; Fixed costs: $34,000 per month
Operating income: $4,610
Calculate the sales volume variance for fixed costs.

• A) $1,980 U
• B) $2,100 F
• C) $370 U
• D) $0

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Definitions:

Revenue Streams

Various sources of income that a business receives from its normal business operations or other investments.

Bicycle Shop

A retail business specializing in the sale of bicycles, bicycle parts, and accessories, often offering repair services as well.

Accessories

Supplementary items or external additions that complement the main product offering or enhance its usability or aesthetics.

Intangible Sale

The process of selling a product or service that is not physical in nature, often involving intellectual property, software, or services.