Greenhouse Corporation used the following data to evaluate their current operating system.The company sells items for $12 each and had used a budgeted selling price of $13 per unit.

Required
Compute the static-budget variance of revenues,the static-budget variance of variable costs,and the static-budget variance of operating income.

Question

Greenhouse Corporation used the following data to evaluate their current operating system.The company sells items for $12 each and had used a budgeted selling price of $13 per unit.

Required
Compute the static-budget variance of revenues,the static-budget variance of variable costs,and the static-budget variance of operating income.

Quizplus · Accepted Answer

E)Revenues: [(307,500 units × $12)- (303,000 units ×$13)] = $249,000 F
Variable costs: [($975,250 - $965,500)] = $9,750 U
 11ea7c93_bf4a_0f97_9d3f_ffa89e7d97c3_TB3439_00

Greenhouse Corporation Used the Following Data to Evaluate Their Current