The Following Is a Summarized Master Budget That Winnipeg Company

question 96

Multiple Choice

The following is a summarized master budget that Winnipeg Company prepared for January:
$\begin{array}{|l|r|r|}\hline \text { Sales } & & 9,000 \text { units } \\\hline \text { Sales revenue } & \$ 450,000 \\\hline \text { Less variable costs: } & & \\\hline \text { Manufacturing } & \$ 270,000 & \\\hline \text { Selling and administrative } & \underline{18,000} & \underline{288,000} \\\hline \text { Contribution } & & \$ 162,000 \\\hline \text { Less fixed costs: } & & \\\hline \text { Manufacturing } & 72,000 & \\\hline \text { Selling and administrative } & \underline{27,000} & \underline{99,000} \\\hline \text { Operating income } & & \$ 63,000 \\\hline\end{array}$

$\text { Actual results for January were as follows: }$

$\begin{array}{|l|r|}\hline \text { Units produced and sold } & 8,500 \text { units } \\\hline \text { Selling price per unit } & \$ 55.00 \\\hline \text { Variable costs per unit: } & \\\hline \text { Manufacturing } & \$ 32.00 \\\hline \text { Selling and administrative } & \$ 1.50 \\\hline \text { Total fixed costs } & \$ 99,000\\\hline\end{array}$

-What total sales volume variance did Winnipeg Company report for January?

• A) $3,500 U.
• B) $9,000 U.
• C) $25,000 U.
• D) $27,500 U.

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Definitions:

Import

The act of bringing goods or services into a country from abroad for the purpose of trade.

Export

The sale of goods or services from one country to another.

Trucks

Large heavy-duty vehicles designed for transporting goods and materials over long distances.

Cars

Motor vehicles with four wheels designed primarily for passenger transportation on roads.