The Static Budget,at the Beginning of the Month,for Vintage Wine

question 86

Multiple Choice

The static budget,at the beginning of the month,for Vintage Wine Company follows: Static budget:
Sales volume: 2000 units; Sales price: $50.00 per unit
Variable costs: $13.00 per unit; Fixed costs: $25,500 per month
Operating income: $48,500
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 1900 units; Sales price: $58.50 per unit
Variable costs: $16.00 per unit; Fixed costs: $34,300 per month
Operating income: $46,450
Calculate the flexible budget variance for variable costs.

• A) $30,400 U
• B) $1650 U
• C) $5700 U
• D) $24,700 F

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Definitions:

Rhetoric

The art of effective or persuasive speaking or writing, especially the use of figures of speech and other compositional techniques.

Equal Freedom

The principle that all individuals should have the same rights and opportunities to pursue their freedoms, without discrimination or unjust restrictions.

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A term historically and currently used to refer to individuals of Sub-Saharan African descent.

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The characteristics, values, and societal structures that define the existence and collective identity of a nation.