Tanger Company has the following data: Actual ResultsStatic BudgetUnits990700Sales Revenue$75,240$37,800Variable Costs35,64018,900Contribution Margin39,60018,900Fixed Costs39,00015,000Operating Income/(Loss)$600$3,900 What is the static budget variance for operating income? A. $3,300 F B. $20,700 U C. $3,300 U D. $20,700 F

Solution: static budget variance for operating income = Actual opetrating income - static budget…

Answered: Actual Results Static Budget Units 990…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

B. $20,700 U

C. $3,300 U

D. $20,700 F

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

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