ACCOUNTING
Multiple Choice
Abernathy Corporation used the following data to evaluate their current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit
Actual Budgeted
Units sold 92,000 units 90,000 units
Variable costs $450,800 $432,000
Fixed costs $ 95,000 $100,000
What is the static-budget variance of variable costs?
a. $1,200 favorable
b. $18,800 unfavorable
c. $20,000 favorable
d. $1,200 unfavorable
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