Zany Brainy Projected Current Year Sales of 50,000 Units at a Unit

question 16

Multiple Choice

Zany Brainy projected current year sales of 50,000 units at a unit sale price of $20.00. Actual current year sales were 55,000 units at $22.00 per unit. Variable costs were budgeted at $14.00 per unit and actually totaled $15.00 per unit. Budgeted fixed costs totaled $400,000, while actual fixed costs amounted to $420,000.
-What is the Zany Brainy's flexible budget variance for variable expenses?

• A) $55,000 favourable
• B) $50,000 favourable
• C) $55,000 unfavourable
• D) $50,000 unfavourable

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