What is the static budget variance of variable costs

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Chapter 4 / Exercise 11
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Warren
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62) What is the static-budget variance of variable costs? A) $13,000 favorable B) $13,000 unfavorable C) $15,000 favorable D) $15,000 unfavorable Answer: D Explanation: D) $965,000 - $950,000= $15,000 U
Diff: 2 Terms: static-budget variance Objective: 1 AACSB: Analytical skills63)
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Chapter 4 / Exercise 11
Survey of Accounting
Warren
Expert Verified
What is the static-budget variance of operating income?
U
Diff: 2 Terms: static-budget variance, flexible-budget variance Objective: 1 AACSB: Analytical skills65) The flexible budget contains:
Diff: 1 Terms: flexible budget
Objective: 2 AACSB: Reflective thinking66) The following items are the same for the flexible budget and the master budget EXCEPT the same:
Diff: 2 Terms: flexible budget Objective: 2 AACSB: Reflective thinking67) The sales-volume variance is due to: A) using a different selling price from that budgeted B) inaccurate forecasting of units sold
C) poor production performance D) Both A and B are correct. Answer: B
Diff: 2 Terms: sales-volume variance Objective: 2 AACSB: Reflective thinking68) An unfavorable sales-volume variance could result from:
Diff: 2 Terms: sales-volume variance Objective: 2 AACSB:
Reflective thinking 69) If a sales-volume variance was caused by poor-quality products, then the ________ would be in the best position to explain the variance.
Diff: 2 Terms: sales-volume variance Objective: 2 AACSB: Reflective thinking

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