Answer the following questions using the information below:
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)$12,000 unfavorable
B)$12,000 favorable
C)$15,000 favorable
D)$15,000 unfavorable

Question

Answer the following questions using the information below:
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)$12,000 unfavorable 
B)$12,000 favorable 
C)$15,000 favorable 
D)$15,000 unfavorable

Quizplus · Accepted Answer

The static-budget variance of operating income is $12,000 favorable because the actual operating income of $108,000 is $12,000 more than the static-budget operating income of $96,000.

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