Lincoln Corporation used the following data to evaluate its current operating system. The company sells items for $17 each and uses a budgeted selling price of $17 per unit. Actual Budgeted Units sold 49,000 units 30,000 units Variable costs $168,000 $155,000 Fixed costs $42,000 $52,000 What is the static budget variance of operating income? A. $320,000 unfavorable B. $310,000 unfavorable C. $320,000 favorable D. $310,000 favorable

Lincoln Corporation used the following data to evaluate its current operating system. The company sells items for $17 each and uses a budgeted selling price of $17 per unit. Actual Budgeted Units sold 49,000 units 30,000 units Variable costs $168,000 $155,000 Fixed costs $42,000 $52,000 What is the static budget variance of operating income? A. $320,000 unfavorable B. $310,000 unfavorable C. $320,000 favorable D. $310,000 favorable

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 5CE: Uchdorf Manufacturing just completed a study of its purchasing activity with the objective of...

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possible Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $17 each and used a budgeted selling price of $17 per unit. Actual Budgeted Units sold 47,000 units 33,000 units Variable costs $170,000 $150,000 Fixed costs $42,000 $51,000 What is the static-budget variance of variable costs? O A. $20,000 unfavorable B. $11,000 unfavorable C. $14,000 favorable D. $9,000 favorable
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Lincoln Corporation used the following data to evaluate their current operating systemThe company sells items for $18 each and used a budgeted selling price of $18 per Units sold Variable costs Fixed costs Actual Budgeted 45,000 units 31,000 units $161,000 150,000 $44,000 $50,000 What is the staticbudget variance of variable costs? A. 11,000 unfavorable B. $6,000 favorable C. 14,000 favorable D. $5,000 unfavorable
Schooner Corporation used the following data to evaluate its current operating system. The company sells items for $26each and used a budgeted selling price of $26 per unit. Actual Budgeted Units sold 177,000 units 189,000 units Variable costs $1,089,000 $1,285,000 Fixed costs $809,000 $778,000 What is the static-budget variance of revenues? A. $12,000 unfavorable B. $12,000 favorable C. $312,000 unfavorable D. $312,000 favorable
Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $18 each and used a budgeted selling price of $18 per unit. Actual Budgeted Units sold 43,000 units 33,000 units Variable costs $166,000 $150,000 Fixed costs $41,000 $58,000 What is the static-budget variance of operating income? A. $164,000 unfavorable B. $181,000 favorable C. $181,000 unfavorable D. $164,000 favorable