The Static Budget,at the Beginning of the Month,for Assembly Furniture

question 39

Multiple Choice

The static budget,at the beginning of the month,for Assembly Furniture Company follows: Static budget:
Sales volume: 1,000 units; Sales price: $70.00 per unit
Variable costs: $33.00 per unit; Fixed costs: $36,100 per month
Operating income: $900
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 990 units; Sales price: $74.00 per unit
Variable costs: $35.00 per unit; Fixed costs: $34,000 per month
Operating income: $4,610
Calculate the sales volume variance for fixed costs.

• A) $1,980 U
• B) $2,100 F
• C) $370 U
• D) $0

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