Use the information below to answer the following question(s).Everclean Filter Corporation used the following data to evaluate their current operating system.The company sells items for $10 each and had used a budgeted selling price of $11 per unit.
-What is the static-budget variance of revenues?
A)$60,000 favourable
B)$240,000 favourable
C)$240,000 unfavourable
D)$6,000 favourable
E)$6,000 unfavourable

Question

Use the information below to answer the following question(s).Everclean Filter Corporation used the following data to evaluate their current operating system.The company sells items for $10 each and had used a budgeted selling price of $11 per unit. 
-What is the static-budget variance of revenues?
A)$60,000 favourable 
B)$240,000 favourable 
C)$240,000 unfavourable 
D)$6,000 favourable 
E)$6,000 unfavourable

Quizplus · Accepted Answer

The static-budget variance of revenues can be calculated as 
Actual Revenues - Budgeted Revenues = ($10 * 24,000) - ($11 * 24,000) = $240,000 unfavourable. Therefore, the best choice is C, which is the only option that matches this result.

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