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Unformatted text preview: - 250,000- 10,000 a) - 240,000- 240,000- 10,000 Operating Income $ 138,000- 22,000 160,000 40,000 120,000 18,000 ======== ======== ======== ======== ======== ======== a) Since Fixed Costs do not vary with volume, they CANNOT have a volume variance. b) Volume Variance can also be computed as Physical Units * Budget $$/unit. c) Efficiency Variance consists of a Volume Variance and a Spending Variance; and only occurs in a multiple driver analysis. d) Since this example is a single driver analysis, this is just a Spending Variance. Developed by Terrence G Peterson, All Rights Reserved 92b31877e6f8d6669ffa9f8f6dd3523bcc7ea61a.doc ProfTGP@aol.com...
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- Spring '08
- Managerial Accounting