The Following Data Are for Bob Corporation The Total of the Sales-Activity Variances Is _____

question 41

Multiple Choice

The following data are for Bob Corporation: $\begin{array}{ccc} && & \text { Flexible } \\&& & \text { Budget for } \\&& \text { Static } & \text { Actual Sales } \\&\text { Actual } &\text { Budget } & \text { Activity }\\\hline \text { Units } & 18,000 & 16,000 & 18,000 \\\text { Sales } & \$ 360,000 & \$ 320,000 & \$ 360,000 \\\text { Variable costs } & 234,000 & 192,000 & 216,000 \\\text { Contribution margin } & \$ 126,000 & \$ 128,000 & \$ 144,000 \\\text { Fixed costs } & 76,000 & 80,000 & 80,000 \\\text { Operating income } & \$ 50,000 & \$ 48,000 & \$ 64,000 \\\end{array}$ The total of the sales-activity variances is _____.

• A)$16,000 favorable
• B)$16,000 unfavorable
• C)$14,000 favorable
• D)$14,000 unfavorable

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