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.Actual92,000 units$450,800$95,000Budgeted90,000 units$432,000$100,000Units SoldVariable CostsFixed CostsWhat is the total operating income variance?$6,200 favorable$6,200 unfavorable$3,800 unfavorable$3,800 favorable

Formula: Net operating income = Revenues - Variable costs - Fixed costs

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 Actual Budgeted Units Sold 92,000 units 90,000 units Variable Costs $450,800 $432,000 Fixed Costs $95,000 $100,000 What is the total operating income variance? O $6,200 favorable O $6,200 unfavorable O $3,800 unfavorable

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 Actual Budgeted Units Sold 92,000 units 90,000 units Variable Costs $450,800 $432,000 Fixed Costs $95,000 $100,000 What is the total operating income variance? O $6,200 favorable O $6,200 unfavorable O $3,800 unfavorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Alpesh
Sagar
Komatsu company’s budget for sales was 1,000 of small size tractor for $1,200 per the tractor. The company’s actual sales was $1,365,000, sales units for 1,300 bikes. What are the Sales Price Variance and Sales Activity Variance? And show in graph.
Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $12 each and used a budgeted selling price of $12 per unit. Actual Budgeted Units sold 42,000 units 36,000 units Variable costs $168,000 $151,000 $58,000 Fixed costs $45,000 What is the static-budget variance of revenues? O A. $72,000 unfavorable OB. $6,000 unfavorable O C. $72,000 favorable O D. $4,000 favorable O Time Re esc
Millan Company provided you with the following data: Budgeted Fixed FOH costs $207,000; Actual FOH incurred $555,000; Variable FOH rate per direct labor hour $5; Fixed FOH rate per direct labor hour $3; Standard direct labor hours 68,000; Actual direct labor hours used 70,000. What is the total amount of idle capacity variance? $2,000 Unfavorable $2,000 Favorable$3,000 Unfavorable $8,000 Unfavorable None of the above
Please do not give solution in image format thanku
Carson CPAS specializes in preparing 1040EZ returns for low-income clients. The firm charged $100 per return this year and budgeted $100 per return. Additional information for the firm includes: Actual Budgeted 800 750 $37,500 12,000 Returns processed Variable costs Fixed costs Prepare Carson's static budget and the static budget performance report. Note: Do not use negative signs with any of your answers. Note: Indicate whether the variance is favorable (F) or unfavorable (U) using the drop-down menu in the last column next to the variable amount. Budgeted returns Actual returns Returns processed variance Revenue Variable costs Fixed costs Net income $36,000 12,500 $ $ Actual Results 0 For U $ 0$ Budget Results $ 0$ Variances 0 0 0 0 For U ♦ + >
Coroid Corporation used the following data to evaluate their current operating system. The company sells items for $16 each and had used a budgeted selling price of $17 per unit. Actual 290,000 units 273,000 units $960,000 $61,000 Budgeted Units sold Vanable costs $889,000 $45,000 Fixed costs What is the static-budget variance of variable costs? O $61,000 favorable O $61,000 unfavorable O $77,000 favorable O $77,000 unfavorable
The cost accountant for Carlos Candies, Incorporated prepared the following static budget based on expected activity of 4,200 units: Revenues Variable Costs Contribution Margin Fixed Costs Net Income Multiple Choice If Carlos actually produced 3,300 units, the flexible budget would show fixed costs amounting to O O O $25,300. $ 124,000 $118,000. (94,500) 29,500 (23,500) $ 6,000 None of these answers are correct. $23,500.
Jordan Company nas provided the following year data. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances Sales Variable product costs. Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense JORDAN COMPANY Internal Income Statement for Year 2 Budget Sales Variable expenses: Product costs Selling expenses Other expenses Contribution margin $ 519,000 202,000 Required Prepare a budgeted and actual income statement for Internal use. Fixed expenses: Product costs Selling expenses Other expenses Operating income (loss) Interest expense Net income (loss) 49,000 3,200 16,000 24,000 1,400 688 8,200 Unfavorable 5,000 Favorable 2,200 Unfavorable 1,100 Unfavorable 290 Favorable 460 Favorable 140 Unfavorable 100 Favorable Actual
Jackson Company manufactures computer keyboards. The budgeted sales price is $60 per keyboard, the variable costs are $28 per keyboard, and budgeted fixed costs are $13,000. What is the budgeted operating income for 2,000 keyboards? OA. $58,000 OB. $51,000 OC. $67,000 OD. $64,000
None