The Alaska Fish Company completed the flexible budget analysis for the second quarter, which is given below. Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) Flexible Budget Sales Volume Actual Results Variance Flexible Budget Variance 12,840 0 12,840 1,040 F Static Budget 11,800 $62,700 $2,686 U $65,386 $5,296 F $60,090 27,580 72 U 27,508 $2,228 U 25,280 $35,120 $2,758 U $37,878 $3,068 F $34,810 34,290 280 U 34,010 $0 34,010 $830 $3,038 U $3,868 $3,068 F $800 Which of the following statements would be a correct factor to explain the sales volume variance for operating income? OA. increase in variable cost per unit OB. increase in sales volume OC. increase in fixed costs OD. decrease in sales price per unit
The Alaska Fish Company completed the flexible budget analysis for the second quarter, which is given below. Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) Flexible Budget Sales Volume Actual Results Variance Flexible Budget Variance 12,840 0 12,840 1,040 F Static Budget 11,800 $62,700 $2,686 U $65,386 $5,296 F $60,090 27,580 72 U 27,508 $2,228 U 25,280 $35,120 $2,758 U $37,878 $3,068 F $34,810 34,290 280 U 34,010 $0 34,010 $830 $3,038 U $3,868 $3,068 F $800 Which of the following statements would be a correct factor to explain the sales volume variance for operating income? OA. increase in variable cost per unit OB. increase in sales volume OC. increase in fixed costs OD. decrease in sales price per unit
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 8P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of...
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