Question
The following information was drawn from the accounting records of Ashton Company. Budgeted Actual Sales $ 5,000 $ 6,000 Cost of Goods Sold (3,000) (3,600)
|
The following information was drawn from the accounting records of Ashton Company. |
| Budgeted |
| Actual | |
| Sales | $ 5,000 |
| $ 6,000 |
| Cost of Goods Sold | (3,000) |
| (3,600) |
|
|
| ||
| Gross Margin | 2,000 |
| 2,400 |
| Variable Cost | (1,000) |
| (1,200) |
| Fixed Cost | (500) |
| (400) |
|
|
| ||
| Net Income | $ 500 |
| $ 800 |
|
|
| ||
Based on this information Ashton Company has a
a. $200 favorable fixed operating cost variance
b. $200 unfavorable fixed operating cost variance
c. $100 favorable fixed operating cost variance
d. $100 unfavorable fixed operating cost variance
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
14th Edition
9780470587232, 470587288, 470587237, 978-0470587287
