Schooner Corporation used the following data to evaluate its current operating system. The company sells items for $25 each and used a budgeted selling price of $25 per unit.

What is the static-budget variance of variable costs?
A) $36,000 favorable
B) $36,000 unfavorable
C) $204,000 favorable
D) $204,000 unfavorable

Question

Schooner Corporation used the following data to evaluate its current operating system. The company sells items for $25 each and used a budgeted selling price of $25 per unit.

What is the static-budget variance of variable costs?
A) $36,000 favorable 
B) $36,000 unfavorable 
C) $204,000 favorable 
D) $204,000 unfavorable

Quizplus · Accepted Answer

Static-budget variance of variable costs = $1,081,000 - $1,285,000 = $204,000 F

Schooner Corporation Used the Following Data to Evaluate Its Current