Corporation sold laser pointers for $ 14 each in 2017. Its budgeted selling price was $ 13 per unit. Other information related to its performance is given below: Actual Budgeted Units made and sold 27,300 27,600 Variable costs $100,000 $5 per unit Fixed costs $52,000 $48,000 Calculate Zoar's static budget variance for (a) revenues, (b) variable costs, (c) fixed costs, and (d) operating income. Begin by determining all of the actual amounts, then the static budget amounts, and finally the static-budget variances. Label each variance as favorable (F) or unfavorable (U)

         Static budget variance

a. revenue variance =  budgeted revenue  - actual revenue

                               = ( $13*27,600 ) -  ( $14*27,300)

                                =  $358,800 - $382,200

                              = $23,400 F

b  Variable cost variance =  ($5* 27,600) - $100,000

                                         =  $138,000 -  $100,000

                                         = $38,000 F

c.  fixed cost variance     =   $48,000 -  $52,000

                                        =     $4,000  U

d. operating income   =  $23,400 F + $38,000 F  + $4,000 U

                                   =   $57,400 F

Explanation:

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