Question

For the month of July, Monroe Company, a maker of erobot, prepared the table below that shows their master budget (planning or static budget) and their nexible budget Actual Master Results Budget 10.350 s90 Seo $124,000 12,000 $87 $72 $125,400 Sales (in units) Selling Price per unit Variable Cost per unit Total Fixed Costs 12 What is the activity variance in net operating income? A. в. C. $34,650 favorable $38,750 favorable $73,400 favorable $54,600 favorable D. E. None of the above. 13 What is the total spending variances? $149,850 favorable $36,000 unfavorable $37,400 unfavorab;e $1,400 favorable А. В. С. D. None of the above. E.

Answer 1

12) Activity variance in operating income

	10350 Units	12000 Units
Sales	931500	1080000
Variable cost	714150	828000
Fixed cost	124000	124000
Operating income	93350	128000

So answer is 128000-93350 = 34650 F

So answer is a) $34650 Favorable

13) Total spending variance = Flexible budget expense-actual expense = 952000-989400 = 37400 U

So answer is c) $37400 Unfavorable