Multiple ChoiceO$1,160 favorable.$817 favorable.$1,440 favorable.$720 favorable.$1,060 favorable TB MC Qu. 16-80 (Static) The net effect of AR-10's sales volume variance on profit: Duo, IncorporatedDuo, Incorporated, carries two products and has the following year-end income statement (000s omitted)Product ZR-7UnitsSales $Variable costsProduct AR-10Multiple ChoiceBudget2,000$ 6,0002,4001,800$4,200$ 1,800Actual2,800$ 7,5602,8001,900$4,700$ 2,860Fixed CostsTotal CostsOperating incomeThe net effect of AR-10's sales volume variance on profit is:Budget6,000$ 12,0006,0002,400$ 8,400$ 3,600Actual5,600$ 11,7605,8802,400$ 8,280$ 3,480

Variable cost Depends upon the production of goods or services that is increment of sales increases…

TB MC Qu. 16-80 (Static) The net effect of AR-10's sales volume variance on profit: Duo, Incorporated Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted) Units Sales $ Variable costs Fixed Costs Total Costs Operating income Product AR-10 Multiple Choice Budget 2,000 $6,000 2,400 1,800 $4,200 $ 1,800 Actual 2,800 $ 7,560 2,800 1,900 $4,700 $2,860 The net effect of AR-10's sales volume variance on profit is: Product ZR-7 Budget 6,000 $ 12,000 6,000 2,400 $ 8,400 $3,600 Actual 5,600 $ 11,760 5,880 2,400 $8,280 $3,480

TB MC Qu. 16-80 (Static) The net effect of AR-10's sales volume variance on profit: Duo, Incorporated Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted) Units Sales $ Variable costs Fixed Costs Total Costs Operating income Product AR-10 Multiple Choice Budget 2,000 $6,000 2,400 1,800 $4,200 $ 1,800 Actual 2,800 $ 7,560 2,800 1,900 $4,700 $2,860 The net effect of AR-10's sales volume variance on profit is: Product ZR-7 Budget 6,000 $ 12,000 6,000 2,400 $ 8,400 $3,600 Actual 5,600 $ 11,760 5,880 2,400 $8,280 $3,480

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Multiple Choice
O
$1,160 favorable.
$817 favorable.
$1,440 favorable.
$720 favorable.
$1,060 favorable

TB MC Qu. 16-80 (Static) The net effect of AR-10's sales volume variance on profit: Duo, Incorporated
Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted)
Product ZR-7
Units
Sales $
Variable costs
Product AR-10
Multiple Choice
Budget
2,000
$ 6,000
2,400
1,800
$4,200
$ 1,800
Actual
2,800
$ 7,560
2,800
1,900
$4,700
$ 2,860
Fixed Costs
Total Costs
Operating income
The net effect of AR-10's sales volume variance on profit is:
Budget
6,000
$ 12,000
6,000
2,400
$ 8,400
$ 3,600
Actual
5,600
$ 11,760
5,880
2,400
$ 8,280
$ 3,480

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Cost volume variance Price quantity variance Cost variance Cost quantity variance
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