Use the information below to answer the following question(s).Ames Golf Company used the following data to evaluate their current operating system.The company sells 1 pack of golf balls for $10 per pack.The $10 selling price is also the budgeted selling price.
-A company uses a static budget approach and the previous management accountant calculated the following information: Fixed costs variance $10,000 U; revenues variance $400,000 F; contribution margin variance $60,000 F.What is the total static-budget variance?
A)$50,000 F
B)$50,000 U
C)$230,000 F
D)$230,000 U
E)$390,000 F

Question

Use the information below to answer the following question(s).Ames Golf Company used the following data to evaluate their current operating system.The company sells 1 pack of golf balls for $10 per pack.The $10 selling price is also the budgeted selling price. 
-A company uses a static budget approach and the previous management accountant calculated the following information: Fixed costs variance $10,000 U; revenues variance $400,000 F; contribution margin variance $60,000 F.What is the total static-budget variance?
A)$50,000 F 
B)$50,000 U 
C)$230,000 F 
D)$230,000 U 
E)$390,000 F

Quizplus · Accepted Answer

The total static-budget variance is the sum of the fixed costs variance, revenues variance, and contribution margin variance. In this case, the total static-budget variance is $10,000 U + $400,000 F + $60,000 F = $50,000 F.

Use the Information Below to Answer the Following Question(s)