Answer:
$470,000 F
Explanation:
The computation of the static budget variance of operating income is shown below:
Particulars Actual results Static budget Static budget variance
Units sold 180,000 units 185,000 units
Revenues $3,780,000 $4,440,000 $660,000 U
Variable costs $1,080,000 $1,295,000 $215,000 F
Contribution margin $2,700,000 $3,145,000 $445,000 F
Fixed costs $800,000 $775,000 $25,000 U
Operating income $1,900,000 $2,370,000 $470,000 F
Note:
Multiply the selling per unit with unit sold to get the revenue amount
