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Andes Corporation used the following data to evaluate their current operating system. The company sells items for $19 each and used a budgeted selling price of $19 per unit. Actual Budgeted Units sold 48,000 units 39,000 units Variable costs $167,000 $152,000 Fixed costs $41,000 $50,000 What is the static-budget variance of revenues

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Tundexi

Answer:

$171,000 Favorable

Explanation:

Static-budget variance of revenues = Actual revenue - Budgeted revenue

Static-budget variance of revenues = [Units sold*Price] - [Units sold*Price]

Static-budget variance of revenues = [48000*$19] - [39000*$19]

Static-budget variance of revenues = $912,000 - $741,000

Static-budget variance of revenues = $171,000 Favorable

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