11 general insurance company had a static budgeted operating income of 4 6 million h 4302519
11) General Insurance Company had a static budgeted operating income of $4.6 million; however, actual income was $3.0 million. What is the static budget variance of operating income?
A) $1,000,000 favourable
B) $1,000,000 unfavourable
C) $1,600,000 favourable
D) $3,000,000 favourable
E) $1,600,000 unfavourable
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.

Budgeted 
Actual 
Units Sold 
1,000,000 
990,000 
Variable Costs 
$3,000,000 
$2,500,000 
Fixed Costs 
$1,800,000 
$1,850,000 
12) What is the actual operating income for Ames Golf Company using the actual results?
A) <$3,360,000>
B) $4,750,000
C) $5,200,000
D) $5,550,000
E) $5,970,000
13) What is the budgeted operating income for Ames Golf Company?
A) $7,000,000
B) $5,970,000
C) $5,550,000
D) $5,200,000
E) $4,750,000
14) What is the total static budget variance for Ames Golf Company?
A) $650,000 favourable
B) $450,000 unfavourable
C) $400,000 favourable
D) $390,000 unfavourable
E) $350,000 favourable
15) 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
Required: What is the total staticbudget variance?
A) $50,000 F
B) $50,000 U
C) $230,000 F
D) $230,000 U
E) $390,000 F
Answer the following question(s) using the information below.
Abernathy 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.

Actual 
Budgeted 
Units sold 
92,000 units 
90,000 units 
Variable costs 
$450,800 
$432,000 
Fixed costs 
$95,000 
$100,000 
16) What is the staticbudget variance of revenues?
A) $20,000 favourable
B) $20,000 unfavourable
C) $2,000 favourable
D) $2,000 unfavourable
E) $25,000 unfavourable
17) What is the staticbudget variance of variable costs?
A) $1,200 favourable
B) $18,800 favourable
C) $20,000 favourable
D) $1,200 unfavourable
E) $18,800 unfavourable
18) What is the staticbudget variance of operating income?
A) $3,800 favourable
B) $1,200 unfavourable
C) $6,200 favourable
D) $6,200 unfavourable
E) $1,200 favourable
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.

Actual 
Budgeted 
Units sold 
495,000 units 
500,000 units 
Variable costs 
$1,250,000 
$1,500,000 
Fixed costs 
$925,000 
$900,000 
19) What is the staticbudget variance of revenues?
A) $50,000 favourable
B) $50,000 unfavourable
C) $5,000 favourable
D) $5,000 unfavourable
E) $25,000 unfavourable
20) What is the staticbudget variance of variable costs?
A) $200,000 favourable
B) $50,000 unfavourable
C) $50,000 favourable
D) $250,000 unfavourable
E) $250,000 favourable
21) What is the staticbudget variance of operating income?
A) $175,000 favourable
B) $195,000 unfavourable
C) $225,000 favourable
D) $200,000 unfavourable
E) $200,000 favourable