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

question 142

Multiple Choice

The static budget,at the beginning of the month,for Onyx Décor Company,follows: Static budget:
Sales volume: 1,100 units; Sales price: $70.00 per unit
Variable costs: $32.00 per unit; Fixed costs: $38,000 per month
Operating income: $3,800
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 980 units; Sales price: $75.00 per unit
Variable costs: $35.00 per unit; Fixed costs: $34,200 per month
Operating income: $5,000
Calculate the flexible budget variance for sales revenue.

• A) $5,760 U
• B) $5,760 F
• C) $4,900 U
• D) $4,900 F

---

Definitions:

Computer Models

Simulations run on computer software that are designed to replicate the behaviors of physical, biological, or chemical systems.

Tsunami

Massive waves in the ocean with lengthy wavelengths resulting from large disturbances, including earthquakes, volcanic activities, or underwater slips.

Volcanic Material

The natural products ejected by a volcano, including lava, ash, volcanic rocks, and gases.

Landslides

The movement of rock, earth, or debris down a slope due to gravity, which can be triggered by factors like rainfall, earthquakes, or human activity.