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REVENUE AND PROFIT VARIANCES - EXTRA PROBLEMS Calculate the six following variances for each of the four problems: 1. Flexible-budget operating income variance 2. Static-budget operating income variance 3. Sales volume operating income variance 4. Static-budget sales variance 5. Sales price variance 6. Sales volume variance Use the triple-column framework discussed in the class notes to facilitate the calculation of the variances. 1. You are given the following information for Ajax Company. 2. Orcutt Corporation prepared a budget last period that called for sales of 9,000 units at a price of $12 each. The costs were estimated to be $5 variable per unit and $27,000 fixed. During the period, actual production and actual sales were 9,200 units. The actual selling price was $12.15 per unit. Variable costs were $5.90 per unit. Actual fixed costs were $27,000. 3. Ortega and Vaughan (OV) is a CPA firm that gets a large portion of its revenue from tax services. Last year, OV's billable tax hours were higher than expected; but as shown by the following data, profits from the Tax Department were lower than anticipated. a These are hours billed to clients. They are less than the hours worked because there is nonbillable time (e.g., slack periods, time in training sessions) and because some time worked for clients is not charged to them