Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Almond Company expressed the total expenses (Y) component of its master budget for February with the cost formula Y = $90,000 + $20 * X,

image text in transcribed

Almond Company expressed the total expenses (Y) component of its master budget for February with the cost formula Y = $90,000 + $20 * X, where X represents the expected number of units of its only product to be manufactured and sold. The budgeted average selling price per unit was $40 for budgeted sales volume 6,000 units. Reported actual results for February were as follows: Sales 6.200 units Sales revenue $ 260,000 Less variable costs ($ 125,000) Contribution margin $ 135,000 Less fixed costs ($ 98,000) Operating Income $ 37,000 What was the total static budget variance for February? A. $6,500 Unfavourable OB. $6,000 Unfavourable OC. $7,000 Favourable OD. $7,500 Favourable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Of The Safety Of Electrical Installations

Authors: Papa Samba Agne

1st Edition

6205799308, 978-6205799307

More Books

Students also viewed these Accounting questions

Question

4. What are effective practices for user-generated content sites?

Answered: 1 week ago

Question

3. Identify the methods used within each of the three approaches.

Answered: 1 week ago