Answer the Following Questions Using the Information Below:
V8 Engineering

question 92

Multiple Choice

Answer the following questions using the information below:
V8 Engineering Pty used the following data to evaluate their current operating system.The company sells items for $14.50 each and had used a budgeted selling price of $15 per unit.
$$\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\\text { Units sold } & 206000 \text { units } & 200000 \text { units } \\\text { Variable costs } & \$ 965000 & \$ 950000 \\\text { Fixed costs } & \$ 53000 & \$ 50000\end{array}$$
-What is the static-budget variance of variable costs?

• A)$13 000 unfavourable
• B)$15 000 favourable
• C)$13 000 favourable
• D)$15 000 unfavourable

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