The Following Static Budget Is Provided What Will Be the Overall Volume Variance If 12,000 Units

question 125

Multiple Choice

The following static budget is provided: $\begin{array}{lc}&\text { Per Unit }&\text {Total }\\\text { Sales }&\$60&\$900,000\\\text { Less variable costs: }\\ \text { Manufacturing costs } &30 & 450,000 \\ \text { Selling and administrative costs } & \underline{10} & \underline{ 150,000} \\\text { Contribution margin }&\$20&\$300,000\\\text { Less fixed costs: }\\\text { Manufacturing costs } && 75,000 \\\text { Selling and administrative costs } && \underline{ 125,000} \\\text { Total fixed costs } && \underline{ 200,000} \\\text { Net income } && \underline{ \$ 100,000}\end{array}$ What will be the overall volume variance if 12,000 units are produced and sold?

• A) $80,000 F
• B) $80,000 U
• C) $60,000 U
• D) $160,000 U

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Definitions:

Imprinting

Learning that can occur only during a specific interval in an animal’s life.

Learning

The process by which new knowledge or skills are acquired.

Eusocial Animals

Animals that live in complex social structures, including cooperative care of the young, division of labor, and, often, overlapping generations within a colony.

Multigenerational

Involving or affecting several generations of a family or species.