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
