If Variable Cost of Goods Sold Totaled $80,000 for the Year

question 23

Multiple Choice

If variable cost of goods sold totaled $80,000 for the year (16,000 units at $5.00 each) and the planned variable cost of goods sold totaled $86,250 (15,000 units at $5.75 each) , the effect of the unit cost factor on the change in variable cost of goods sold is:

• A) $12,000 increase
• B) $5,750 decrease
• C) $12,000 decrease
• D) $5,750 increase