Global Engineering's actual operating income for the current year is $58,000.The flexible budget operating income for actual sales volume is $39,000,while the static budget operating income is $53,000.What is the sales volume variance for operating income?
A)$14,000 favorable
B)$5000 unfavorable
C)$14,000 unfavorable
D)$5000 favorable

Question

Quizplus · Accepted Answer

Sales Volume Variance = Actual Operating Income - Flexible Budget Operating Income 
= $58,000 - $39,000 
= $19,000 unfavorable

Therefore, the best choice is C, which indicates a sales volume variance of $14,000 unfavorable, as it is the closest option to the calculated variance of $19,000 unfavorable.

Global Engineering's Actual Operating Income for the Current Year Is