The static-budget variance for operating income for Jerome Mobility Inc for 2017 is $7,500 F
Solution & Explanation:
Static difference in net profits
= Actual result - Static budget amount
= $47,500 - $40,000
= $7,500 F
The static budget is related to the amount of development expected at the beginning of the financial year. The master budget is the static budget, since it is around a single (absolute) projected production level which is established for the time.
F implies the real expense is smaller than the estimated costs for product products.
The single-budget distinction is the difference in the single budget between the real effects and the resulting estimate.
An adverse deviation -denoted U— has the impact of decreasing operational profit relative to the expected sum as interpreted separately. For certain countries, including the UK, negative variances are often referred to as adverse variances.
