Actual Results Static Budget Units 990 700 Sales Revenue $75,240 $37,800 Variable Costs 35,640 18,900 Contribution Margin 39,600 18,900 Fixed Costs 39,000 15,000 Operating Income/(Loss) $600 $3,900 What is the static budget variance for operating income?
Actual Results Static Budget Units 990 700 Sales Revenue $75,240 $37,800 Variable Costs 35,640 18,900 Contribution Margin 39,600 18,900 Fixed Costs 39,000 15,000 Operating Income/(Loss) $600 $3,900 What is the static budget variance for operating income?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...
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Question
Tanger Company has the following data:
|
Actual Results
|
Static Budget
|
Units
|
990
|
700
|
Sales Revenue
|
$75,240
|
$37,800
|
Variable Costs
|
35,640
|
18,900
|
Contribution Margin
|
39,600
|
18,900
|
Fixed Costs
|
39,000
|
15,000
|
Operating Income/(Loss)
|
$600
|
$3,900
|
What is the static budget variance for operating income?
A. $3,300 F
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