The management accountant at Arlington Hills,a transcontinental private school company,is assessing the change in operating incomes for 2011 and 2012.The revenue in 2011 was $34,000,000 while the operating income was $17,564,000.The revenue in 2012 was $36,000,000,and the operating income was $14,100,000.
Required
Compute the change in operating income in 2000 and 2011.Identify whether the change is a favorable,F,or unfavorable,U,variance.

Question

Quizplus · Accepted Answer

A)2010 = [($34,000,000 - 17,564,000)] = $16,436,000
2011 = [($36,000,000 - $14,100,000)] = $21,900,000 U
[($16,436,000 - $21,900,000)] = $5,464,000 F

The Management Accountant at Arlington Hills,a Transcontinental Private School Company,is