The static budget, at the beginning of the month, for Onyx Décor Company,follon

Question

The static budget, at the beginning of the month, for Onyx Décor Company,follon Static budget ales 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) $5,7601F C) $4,900 U D) $4,9001F

Explanation / Answer

Flexible budget variance for sales revenue :

Flexible budget variance = Flexible budget sales-actual sales

                                    = (980*70)-(980*75)

Flexible budget variance = 4900 F

so answer is d) $4900 F

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