Use the information below to answer the following question(s).Everclean Filter Corporation used the following data to evaluate their current operating system.The company sells items for $10 each and had used a budgeted selling price of $11 per unit.
-What is the static-budget variance of operating income?
A)$258,000 unfavourable
B)$258,000 favourable
C)$222,000 favourable
D)$222,000 unfavourable
E)$3,000 unfavourable

Question

Use the information below to answer the following question(s).Everclean Filter Corporation used the following data to evaluate their current operating system.The company sells items for $10 each and had used a budgeted selling price of $11 per unit. 
-What is the static-budget variance of operating income?
A)$258,000 unfavourable 
B)$258,000 favourable 
C)$222,000 favourable 
D)$222,000 unfavourable 
E)$3,000 unfavourable

Quizplus · Accepted Answer

The static-budget variance of operating income is calculated by comparing the actual operating income to the budgeted operating income. If the actual income is less than the budgeted income, the variance is unfavourable. Here, the variance is $258,000 unfavourable.

Use the Information Below to Answer the Following Question(s)