Use the information below to answer the following question(s).Bates Corporation used the following data to evaluate their current operating system.The company sells items for $10 each and used a budgeted selling price of $10 per unit.
-What is the static-budget variance of operating income?
A)$175,000 favourable
B)$195,000 unfavourable
C)$225,000 favourable
D)$200,000 unfavourable
E)$200,000 favourable

Question

Use the information below to answer the following question(s).Bates Corporation used the following data to evaluate their current operating system.The company sells items for $10 each and used a budgeted selling price of $10 per unit. 
-What is the static-budget variance of operating income?
A)$175,000 favourable 
B)$195,000 unfavourable 
C)$225,000 favourable 
D)$200,000 unfavourable 
E)$200,000 favourable

Quizplus · Accepted Answer

The static-budget variance of operating income is the difference between the budgeted operating income and the actual operating income. In this case, the budgeted operating income is $1,000,000 and the actual operating income is $1,200,000. Therefore, the static-budget variance of operating income is $200,000 favourable.

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