Question 1
An unfavorable sales-volume variance could result from ________.
◦ an inappropriate assignment of labor or machines to specific jobs
◦ competitors taking market share
◦ an inefficiency of a purchasing manager in bargaining with suppliers
◦ a decrease in actual selling price compared to anticipated selling price
Question 2
Classic Products Company manufactures colonial style desks. Some of the company's data was misplaced. Use the following information to replace the lost data:
| | Actual Results | Flexible Budget Variances | Flexible Budget | Sales-Volume Variances | Static Budget |
| Units sold | 490,000 | | 490,000 | | 448,350 |
| Revenues | $187,250 | $5,000 F | (A) | $6,260 U | (B) |
| Variable costs | (C) | $890 U | $71,260 | $10,800 F | $82,060 |
| Fixed costs | $36,670 | $3,740 F | $40,410 | 0 | $40,410 |
| Operating income | $78,430 | (D) | $70,580 | (E) | $66,040 |
What amounts are reported for revenues in the flexible-budget (A) and the static-budget (B), respectively?
◦ $192,250; $175,990
◦ $182,250; $188,510
◦ $187,250; $185,990
◦ $180,990; $188,510
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