The Morton Company Gathered the Following Information for the Year

question 115

Multiple Choice

The Morton Company gathered the following information for the year.
$\begin{array}{lllr}&\text { Product } \mathrm{K} & \text { Product } \mathrm{R} & \text { Total }\\\text { Budgeted sales mix (units) } & 40 \% & 60 \% & 100 \% \\\text { Budgeted and actual sales price } & \$ 48 & \$ 36 & \\\text { Budgeted variable cost per unit } & \$ 32 & \$ 24 &\\\text { Actual sales (units) } & & & 126,000 \\\text { Actual sales mix } & 60 \% & 40 \% & 100 \%\\\text { Fixed costs } & & & \$ 80,000\end{array}$


What is the total sales mix variance?

• A) $705,600.
• B) $403,200.
• C) $302,400.
• D) $100,800.

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