The Static Budget,at the Beginning of the Month,for Steak Frites

question 71

Multiple Choice

The static budget,at the beginning of the month,for Steak Frites Company follows: Static budget:
Sales volume: 1,100 units; Sales price: $70.00 per unit
Variable costs: $32.00 per unit; Fixed costs: $38,500 per month
Operating income: $3,300
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 995 units; Sales price: $74.00 per unit
Variable costs: $36.00 per unit; Fixed costs: $35,000 per month
Operating income: $2,810
Calculate the sales volume variance for revenue.

• A) $3,500 U
• B) $7,350 U
• C) $3,990 U
• D) $3,980 F

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