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Corporation sold laser pointers for $ 14 each in 2017. Its budgeted selling price was $ 13 per unit. Other information related to its performance is given​ below: Actual Budgeted Units made and sold 27,300 27,600 Variable costs $100,000 $5 per unit Fixed costs $52,000 $48,000 Calculate Zoar​'s static budget variance for​ (a) revenues,​ (b) variable​ costs, (c) fixed​ costs, and​ (d) operating income. Begin by determining all of the actual​ amounts, then the static budget​ amounts, and finally the​ static-budget variances. Label each variance as favorable​ (F) or unfavorable​ (U)

Answer :

Answer:

         Static budget variance

a. revenue variance =  budgeted revenue  - actual revenue

                               = ( $13*27,600 ) -  ( $14*27,300)

                                =  $358,800 - $382,200

                              = $23,400 F

b  Variable cost variance =  ($5* 27,600) - $100,000

                                         =  $138,000 -  $100,000

                                         = $38,000 F

c.  fixed cost variance     =   $48,000 -  $52,000

                                        =     $4,000  U

d. operating income   =  $23,400 F + $38,000 F  + $4,000 U

                                   =   $57,400 F

Explanation:

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