A Company Sells Two Products: Radios and Speakers

question 39

Multiple Choice

A company sells two products: radios and speakers.The expected sales for radios were 1,500 units; 2,000 were sold.The budgeted selling price for radios was $15.00; however, the actual selling price was $13.00.The expected sales for speakers were 4,600 units; 5,000 were sold.The budgeted selling price for speakers was $7.50; however, the actual selling price was $9.00.Budgeted and actual variable costs were $4.00 per unit for the radios and $2.00 per unit for the speakers.What is the contribution margin sales-volume variance for the period?

• A)$2,200 unfavourable
• B)$2,200 favourable
• C)$4,500 favourable
• D)$7,700 favourable
• E)$7,700 unfavourable

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Definitions:

Self-Discipline

The ability to control one's feelings and overcome one's weaknesses; the ability to pursue what one thinks is right despite temptations to abandon it.

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Rock-cut temple halls found in Indian Buddhism, containing a stupa and often characterized by an apsidal end.

Ajanta

An ancient complex of Buddhist cave temples in Maharashtra, India, renowned for its murals and sculptures dating from the 2nd century BCE to about 480 or 650 CE.

Wall Painting

An artwork executed directly on a wall, such as a fresco or mural, often displaying a wide array of subjects and serving various cultural, decorative, or social functions.