Question : 11) General Insurance Company had a static budgeted operating income : 1186325

 

11) General Insurance Company had a static budgeted operating income of $4.6 million; however, actual income was $3.0 million. What is the static budget variance of operating income?

A) $1,000,000 favourable

B) $1,000,000 unfavourable

C) $1,600,000 favourable

D) $3,000,000 favourable

E) $1,600,000 unfavourable

 

Use the information below to answer the following question(s).

 

Ames Golf Company used the following data to evaluate their current operating system. The company sells 1 pack of golf balls for $10 per pack. The $10 selling price is also the budgeted selling price.

 

 

Budgeted

Actual

Units Sold

1,000,000

990,000

Variable Costs

$3,000,000

$2,500,000

Fixed Costs

$1,800,000

$1,850,000

 

12) What is the actual operating income for Ames Golf Company using the actual results?

A) <$3,360,000>

B) $4,750,000

C) $5,200,000

D) $5,550,000

E) $5,970,000

13) What is the budgeted operating income for Ames Golf Company?

A) $7,000,000

B) $5,970,000

C) $5,550,000

D) $5,200,000

E) $4,750,000

 

14) What is the total static budget variance for Ames Golf Company?

A) $650,000 favourable

B) $450,000 unfavourable

C) $400,000 favourable

D) $390,000 unfavourable

E) $350,000 favourable

 

15) A company uses a static budget approach and the previous management accountant calculated the following information: Fixed costs variance $10,000 U; revenues variance $400,000 F; contribution margin variance $60,000 F

 

Required: What is the total static-budget variance?

A) $50,000 F

B) $50,000 U

C) $230,000 F

D) $230,000 U

E) $390,000 F

Answer the following question(s) using the information below.

 

Abernathy Corporation used the following data to evaluate their current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.

 

 

Actual

Budgeted

Units sold

92,000 units

90,000 units

Variable costs

$450,800

$432,000

Fixed costs

$95,000

$100,000

 

16) What is the static-budget variance of revenues?

A) $20,000 favourable

B) $20,000 unfavourable

C) $2,000 favourable

D) $2,000 unfavourable

E) $25,000 unfavourable

 

17) What is the static-budget variance of variable costs?

A) $1,200 favourable

B) $18,800 favourable

C) $20,000 favourable

D) $1,200 unfavourable

E) $18,800 unfavourable

18) What is the static-budget variance of operating income?

A) $3,800 favourable

B) $1,200 unfavourable

C) $6,200 favourable

D) $6,200 unfavourable

E) $1,200 favourable

 

Use the information below to answer the following question(s).

 

Bates Corporation used the following data to evaluate their current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.

 

 

Actual

Budgeted

Units sold

495,000 units

500,000 units

Variable costs

$1,250,000

$1,500,000

Fixed costs

$925,000

$900,000

 

19) What is the static-budget variance of revenues?

A) $50,000 favourable

B) $50,000 unfavourable

C) $5,000 favourable

D) $5,000 unfavourable

E) $25,000 unfavourable

20) What is the static-budget variance of variable costs?

A) $200,000 favourable

B) $50,000 unfavourable

C) $50,000 favourable

D) $250,000 unfavourable

E) $250,000 favourable

 

21) What is the static-budget variance of operating income?

A) $175,000 favourable

B) $195,000 unfavourable

C) $225,000 favourable

D) $200,000 unfavourable

E) $200,000 favourable