Take a Test - ahra cl ?? https://www.mathxl.com/Student /PlayerTest.aspx?testid=

Question

Take a Test - ahra cl ?? https://www.mathxl.com/Student /PlayerTest.aspx?testid=176799090&centen; BUSI 1B Spring 2018 O'Dell Test: Chapter 23 Flexible Budgeting Te This Question: 2 pts 2 of 5 (4 complete) The static budget, at the beginning of the month, for Beacon Banner Company follows: Sales volume: 1,100 units; Sales price: $70.00 per unit Variable costs: $33.00 per unit; Fixed costs: $37,800 per month Operating income: $2,900 Actual results, at the end of the month, follows: Actual results: Sales volume: 995 units; Sales price: $75.00 per unit Variable costs: $35.00 per unit; Fixed costs: $35,000 per month Operating income: $4,800 Calculate the sales volume variance for revenue. OA. $3,885 U ? B. $4.975 F OC. $2,800 U OD. $7,350 U

Explanation / Answer

Sales Volume Variance =Actual Sales Units – Budgeted Sales Units) × Standard Unit Profit

= ($995 - $1100)*$37

= ($3885) or  $3885 Unfavourable

Answer would be option A

Standard Unit Profit = Standard Sales Price - Standard Cost (Variable)

=$70-$33

=$37

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.