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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 volume variance master budget sales revenue $102,000 ? $108,000 $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? A. The actual units sold were 60,000. B. The actual unit sales price was $0.10 lower than the budgeted sales price. C. The budgeted unit variable expense was $1.00. D. The volume variance for fixed enses equalled $0. E. The flexible budget fixed expenses equalled $21,000. O O O O O

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 volume variance master budget sales revenue $102,000 ? $108,000 $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? A. The actual units sold were 60,000. B. The actual unit sales price was $0.10 lower than the budgeted sales price. C. The budgeted unit variable expense was $1.00. D. The volume variance for fixed enses equalled $0. E. The flexible budget fixed expenses equalled $21,000. O O O O O

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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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 volume variance master budget sales revenue $102,000 ? $108,000 $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. B. The actual unit sales price was $0.10 lower than the budgeted sales price. C. The budgeted unit variable expense was $1.00. D. The volume variance for fixed expenses equalled $0. O E. The flexible budget fixed expenses equalled $21,000.
Transcribed Image Text: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 volume variance master budget sales revenue $102,000 ? $108,000 $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. B. The actual unit sales price was $0.10 lower than the budgeted sales price. C. The budgeted unit variable expense was $1.00. D. The volume variance for fixed expenses equalled $0. O E. The flexible budget fixed expenses equalled $21,000.
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