Given that the actual outcome is $65,000 and the static budget variance amounts to $35,000, what is the value of the static budget?

Multiple choice question for Direct Cost Variances and Management Control. Select an option, then review the explanation below.

Explanation

The static budget variance is calculated as the difference between the static budget and the actual result. Since the variance is $35,000 and the actual result is $65,000, the static budget equals $65,000 minus $35,000, which is $30,000.

Practice related questions from the same subject.

1.Within the hierarchy of costing and budgeting, which of the following represents a product sustaining cost?
2.Given that the actual cost of a material is $700 while the planned cost was $900, what type of variance is observed?
3.What term is used to describe the anticipated performance of a company?
4.Given that the actual labor cost is $1200 while the planned labor cost is $1000, what is the nature of the labor price variance?
5.In management control, what serves as the benchmark for evaluating actual performance?

Given that the actual outcome is $65,000 and the static budget variance amounts to $35,000, what is the value of the static budget?

Explanation

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