Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $ 12 each and used a budgeted selling price of $ 12 per unit. Actual Budgeted Units sold 42 comma 000 units 39 comma 000 units Variable costs $ 168 comma 000 $ 158 comma 000 Fixed costs $ 46 comma 000 $ 48 comma 000 What is the staticminusbudget variance of revenues?

Question

Business

Madelynn Whitney

1 June, 15:09

Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $ 12 each and used a budgeted selling price of $ 12 per unit. Actual Budgeted Units sold 42 comma 000 units 39 comma 000 units Variable costs $ 168 comma 000 $ 158 comma 000 Fixed costs $ 46 comma 000 $ 48 comma 000 What is the staticminusbudget variance of revenues?

+1

Answers (1)

Know the Answer?

Rayne Luna · Answer 1

The static budget variance of revenues is 36000 Unfavorable

Explanation:

Lincoln Corporation

Static Budget Variances

Actual Budgeted Static Budget

Units sold Units sold Variance

42,000 units 39,000 units

Sales Price $ 12 $ 12

Revenues 504000 468000 36000 Unfavorable

Variable costs $ 168,000 $ 158,000 10,000 Unfavorable

Fixed costs $ 46, 000 $ 48,000 2000 Favorable

The Static Budget Variance is calculated by subtracting the budgeted amounts from the actual amounts.

In a static budget the actual amounts are not changed for different activity levels. Instead the actual is compared with the budgeted so that exact variance is obtained for an organization.