14) Daniels Corporation used the following data to evaluate their current operating system.
The company sells items for $18 each and had used a budgeted selling price of $19 per
280,000 units 278,000 units
What is the static-budget variance of operating income?
Application of knowledge
15) Johnson Company had planned for operating income of $10 million in the master
budget with a contribution margin of $3 million, but actually achieved operating income of
only $7 million and a contribution margin of $2.5 million.
16) A master budget is called a static budget because it is developed around a single
planned output level.