Best Insurance Company had a static budgeted operating income of $8.6 million; however, actual income was $6.0 million. is the static budget variance of operating income.
A) $8.6 million unfavorable
B) $2.6 million favorable
C) $6.0 million favorable
D) $2.6 million unfavorable

Question

Quizplus · Accepted Answer

The static budget variance is the difference between the budgeted amount and the actual amount. Here, the variance is $8.6 million - $6.0 million = $2.6 million unfavorable, as the actual income is less than the budgeted income.

Best Insurance Company Had a Static Budgeted Operating Income of $8.6