Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $ 12 each and used a budgeted selling price of $ 12 per unit. Actual Budgeted Units sold 42 comma 000 units 39 comma 000 units Variable costs $ 168 comma 000 $ 158 comma 000 Fixed costs $ 46 comma 000 $ 48 comma 000 What is the staticminusbudget variance of revenues?

The static budget variance of revenues is 36000 Unfavorable

Explanation:

Lincoln Corporation

Static Budget Variances

                                  Actual               Budgeted              Static Budget

                                  Units sold         Units sold                Variance

                               42,000 units          39,000 units

Sales Price               $ 12                        $ 12

Revenues               504000                 468000              36000 Unfavorable

Variable costs         $ 168,000            $ 158,000           10,000 Unfavorable

Fixed costs           $ 46, 000               $ 48,000              2000 Favorable

The Static Budget Variance is calculated by subtracting the budgeted amounts from the actual amounts.

In a static budget the actual amounts are not changed for different activity levels. Instead the actual is compared with the budgeted so that exact variance is obtained for an organization.

answerinnovative culture;