Question

Pokeman Bunch Inc. , manufactures Poke Monster figures, and has the following data from its operation for the year just completed. Actual A Flexible Budget B Master Budget Units 1,500 1,200 Sales (dollars) $ 93,000 C $ 18,000 F Variable cost E $ 60,000 Contribution Margin $ 1,500 u D Fixed cost F $ 5,000 Operating income $ 7,500 The column heading identified as A is:

Answer 1

If the operating income is $7,500. The column heading identified as A is: $1,500 U.

What is Operating income variance?

Operating income variance can be defined as the actual operating income minus budgeted operating income.

Operating income variance=Actual operating income-Budgeted operating income

When we look at Column A we can see that column A had $1500U (unfavorable) which is the unfavorable variance of contribution margin.

Inconclusion the column heading identified as A is: $1,500 U.

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