The managerial accountant at Oklahoma Aqua-Systems needs to compute the change in operating income from 2011 to 2012.The operating income of 2011 was $2,356,000,and the revenues were $4,000,000.In 2012 the operating income was calculated to be $2,246,000 while the revenues totaled $4,200,000.
Required
Compute the change in operating income in 2011 and 2012.Identify whether the variance is favorable,F,or unfavorable,U.

Question

Quizplus · Accepted Answer

B)2011 = [($4,000,000 - $2,356,000)] = $1,644,000
2012 = [($4,200,000 - $2,246,000)] = $1,954,000
[($1,644,000 - $1,954,000)] = $310,000 F

The Managerial Accountant at Oklahoma Aqua-Systems Needs to Compute the Change