7) The following static budget is provided: Per Unit Total Sales $ 60 $ 900,000 Less...
7) The following static budget is provided: Per Unit Total Sales $ 60 $ 900,000 Less variable costs: Manufacturing costs 30 450,000 Selling and administrative costs 10 150,000 Contribution margin $ 20 $ 300,000 Less fixed costs: Manufacturing costs 75,000 Selling and administrative costs 125,000 Total fixed costs: 200,000 Net income $ 100,000 What will be the overall volume variance if 12,000 units are produced and sold?
A) $80,000 F B) $160,000 U C) $60,000 U D) $80,000 U
Homework Answers
c.$60,000 U.
budgeted volume = $900,000/60
=>15,000 units.
net income for 12,000 units.
| contrubtuion margin (12,000*$20) | 240,000 |
| less:total fixed costs | (200,000) |
| net income | 40,000 |
difference in net income = $100,000 - 40,000
=>$60,000 unfavorable..
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7) The following static budget is provided: Per Unit Total Sales
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