City Golf Center reported actual operating income for the current year as $65,000 The flexible budget operating income for actual volume is $58,000, while the static budget operating income is $59,000. What is the flexible budget variance for operating income?
A) $7,000 favorable
B) $7,000 unfavorable
C) $1,000 unfavorable
D) $1,000 favorable
A .A) Flexible budget variance for operating income = Actual operating income - Expected operating income in the flexible
You might also like to view...
In a civil trial, settlements may be negotiated:
a. only after the judge orders negotiation between parties. b. after a decision has been reached. c. only before a trial begins. d. at any time during the litigation.
During July, Audio City sold 200 radios for $50 each. Each radio had cost Audio City $30 to purchase and carried a two-year warranty. If 5 percent typically need to be replaced over the warranty period and one actually is replaced during July, the entry to record the Product Warranty Expense is:
a. Product Warranty Expense 30 Estimated Product Warranty Liability 30 b. Product Warranty Expense 150 Cash 150 c. Product Warranty Expense 300 Estimated Product Warranty Liability 300 d. Estimated Product Warranty Liability 600 Product Warranty Expense 600
The single-step income statement is easier to prepare, but a criticism of this format is that gross profit and income from operations are not readily available
Indicate whether the statement is true or false
Marketers can affect learning by providing information using a message, format, and delivery that will encourage customers to retain the information.
Answer the following statement true (T) or false (F)