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The Static Budget,at the Beginning of the Month,for New England

question 117

Multiple Choice

The static budget,at the beginning of the month,for New England Furniture Company follows: Static budget:
Sales volume: 1000 units; Sales price: $71.00 per unit
Variable costs: $33.00 per unit; Fixed costs: $36,200 per month
Operating income: $1800
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 960 units; Sales price: $74.00 per unit
Variable costs: $35.00 per unit; Fixed costs: $35,000 per month
Operating income: $2440
Calculate the sales volume variance for fixed costs.

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Definitions:

Writ of Attachment

is a legal document issued by a court ordering the seizure of property to secure satisfaction of a judgment.

Prejudgment Remedy

A legal measure obtained before a court's final decision to secure assets or interests, ensuring satisfaction of a potential judgment.

Debtor

An individual or entity that owes money or has a financial obligation to another party, known as the creditor.

Mortgage

A written instrument that gives a creditor (the mortgagee) an interest in, or lien on, the debtor’s (mortgagor’s) real property as security for a debt. If the debt is not paid, the property can be sold by the creditor and the proceeds used to pay the debt.