Question

try it! 7-1 Zenefit Corporation sold laser pointers for $11 each in 2017. Its budgeted selling price was $12 per unit. Other information related to its performance is given below: Units made and sold Variable costs Fixed costs Actual 28,000 $90,000 $55,000 Budgeted 27,500 $ 3 per unit $58,000 Calculate Zenefit’s static-budget variance for (a) revenues, (b) variable costs, (c) fixed costs, and (d) operating income.

Answer 1

I have provided the answer in the attachment below.

To find the static budget variance, you simply substract the actual money spent from the budgeted money.

Remember that operating income = sales revenue - operating costs (variable costs - fixed costs).