1. The following data are for the month of July for of boots Sales (in units Pri
ID: 2599825 • Letter: 1
Question
1. The following data are for the month of July for of boots Sales (in units Price per wit 562 Variable Cost per unit Total Fixed Costs $135.000 answer) is the company's flexitble udget operating income? (Choose the clowest a A. $171,000 B. 5169,000 C. $IS7,000 D, $153,000 E. $165,000 2. Verona Tech is a vocation school. The school bases its budgets on two measures of activity: nunm of students and number of courses. The school uses the following data in its budgeting: Variable cost per student $0 Variable cost per per month $20 S50 S30 $4,000 Course supplies $1,000 s10 Administrative expenses $2.000 $20 In July, the school budgeted for 300 students and 15 courses. Actual results for the month appear below: Number of Students Number of Courses 280 Faculty wages Course supplies $4.200 $4.800 Administrative expenses $8,300 What is the spending variance for course supplies (choose the closest answer)? A. $100 U B. $50 U C $100 F D. $50 F E. S350 FExplanation / Answer
1.
Flexible budget operating income will be calculated as follows:
Flexible budget operating income is $165,000. Therefore, the correct answer is E.
Flexible budget Sales (12,000 units x $85) 1020000 Less: Variable costs (12,000 units x $60) 720000 Contribution margin 300000 Less: Total fixed costs 135000 Operating income 165000Related Questions
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