The following partial budget versus actual report was prepared for Otis the Great, a manufacturer of dog chew toys disguised as "real life" items such as Crocs and bags of Goldfish: flexible budget actual variance flexible budget $108,000 volume variance master budget sales revenue $102,000 ? $18,000 F variable expenses ? $3,000 F $60,000 ? $50,000 fixed expenses $21,000 ? $25,000 Assuming the master budget was prepared for an activity level of 50,000 units and all products have the sales price and unit variable cost, which of the following statements is incorrect? O A. The actual units sold were 60,000. O B. The volume variance for fixed expenses equalled $0. O C. The budgeted unit variable expense was $1.00. O D. The actual unit sales price was $0.10 lower than the budgeted sales price. O E. The flexible budget fixed expenses equalled $21,000.

The following partial budget versus actual report was prepared for Otis the Great, a manufacturer of dog chew toys disguised as "real life" items such as Crocs and bags of Goldfish: flexible budget actual variance flexible budget $108,000 volume variance master budget sales revenue $102,000 ? $18,000 F variable expenses ? $3,000 F $60,000 ? $50,000 fixed expenses $21,000 ? $25,000 Assuming the master budget was prepared for an activity level of 50,000 units and all products have the sales price and unit variable cost, which of the following statements is incorrect? O A. The actual units sold were 60,000. O B. The volume variance for fixed expenses equalled $0. O C. The budgeted unit variable expense was $1.00. O D. The actual unit sales price was $0.10 lower than the budgeted sales price. O E. The flexible budget fixed expenses equalled $21,000.

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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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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