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Onyx Company prepared a static budget at the beginning of the month. At the end of the month, the company is analyzing actual results versus budget using flexible budget methodology. Data are as follows: Static budget: Sales volume: 1,000 units Variable expense: $32 per unit Operating income: $500 Price: $70 per unit Fixed expenses: $37,500 per month Actual results: Sales volume: 990 units Variable expense: $35 per unit Operating income: $5,610 Price: $74 per unit Fixed expenses: $33,000 per month Based on the above data, how much was the sales volume variance for variable expenses? A) $2,970 U B) B) $3.960 F C) C) $320 F D) D) $380 U

Onyx Company prepared a static budget at the beginning of the month. At the end of the month, the company is analyzing actual results versus budget using flexible budget methodology. Data are as follows: Static budget: Sales volume: 1,000 units Variable expense: $32 per unit Operating income: $500 Price: $70 per unit Fixed expenses: $37,500 per month Actual results: Sales volume: 990 units Variable expense: $35 per unit Operating income: $5,610 Price: $74 per unit Fixed expenses: $33,000 per month Based on the above data, how much was the sales volume variance for variable expenses? A) $2,970 U B) B) $3.960 F C) C) $320 F D) D) $380 U

FINANCIAL ACCOUNTING
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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Onyx Company prepared a static budget at the beginning of the month. At the end of the month, the company is analyzing actual results versus budget using flexible budget methodology. Data are as follows: Static budget: Sales volume: 1,000 units Variable expense: $32 per unit Operating income: $500 Price: $70 per unit Fixed expenses: $37,500 per month Actual results: Sales volume: 990 units Variable expense: $35 per unit Operating income: $5,610 Price: $74 per unit Fixed expenses: $33,000 per month Based on the above data, how much was the sales volume variance for variable expenses? A) $2,970 U B) B) $3.960 F C) C) $320 F D) D) $380 U
Transcribed Image Text:Onyx Company prepared a static budget at the beginning of the month. At the end of the month, the company is analyzing actual results versus budget using flexible budget methodology. Data are as follows: Static budget: Sales volume: 1,000 units Variable expense: $32 per unit Operating income: $500 Price: $70 per unit Fixed expenses: $37,500 per month Actual results: Sales volume: 990 units Variable expense: $35 per unit Operating income: $5,610 Price: $74 per unit Fixed expenses: $33,000 per month Based on the above data, how much was the sales volume variance for variable expenses? A) $2,970 U B) B) $3.960 F C) C) $320 F D) D) $380 U
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