Chapter 8-6

Question 1

is the difference between the static budget operating income and the flexible budget operating income. it is composed of the production volume variance and the operating income volume variance

Answer 1

sales volume variance

Question 2

is the difference between the budgeted fixed overhead costs and teh allocated fixed overhead costs based on actual production

Answer 2

production volume variance

Question 3

is the difference between the static budget operating income for the planned production and sales volume and the budgeted operating income for the actual production and sales volume

Answer 3

operating income volume variance

Question 4

93,100 U is the difference between the static budget operating income and the actual operating income

Answer 4

static budget variance

Question 5

helps managers understand the lost contribution margin from selling fewer units than planned, even though it is not recorded in the standard costing system

Answer 5

sales volume variance

Question 6

is recorded in the standard costing system because it accounts for fixed overheads that were not allocated to products

Answer 6

production volume variance