Multiple Choice
The XTRA Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products:
Standard Super
Budgeted sales in units 3,200 800
Budgeted selling price $300 $850
Budgeted contribution margin per unit $210 $550
Actual sales in units 3,500 1,500
Actual selling price $325 $840
What is the total sales-quantity variance in terms of the contribution margin?
a. $110,000 favorable
b. $170,000 favorable
c. $278,000 favorable
d. $448,000 favorable
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