The Static Budget,at the Beginning of the Month,for Divine Décor

question 118

Multiple Choice

The static budget,at the beginning of the month,for Divine Décor Company,follows: Static budget:
Sales volume: 1500 units; Sales price: $70.00 per unit
Variable costs: $32.00 per unit; Fixed costs: $38,000 per month
Operating income: $19,000
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 990 units; Sales price: $75.00 per unit
Variable costs: $35.00 per unit; Fixed costs: $33,000 per month
Operating income: $6600
Calculate the flexible budget variance for sales revenue.

• A) $6980 U
• B) $6980 F
• C) $4950 U
• D) $4950 F

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