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At year-end a company's actual selling price was $250 per unit and the budgeted sales price per unit was $245. Actual variable costs were $65,000 and actual fixed costs were $45,000. They budgeted to sell 600 units but at year-end they ended up selling 550 units. At the beginning of the year, the budgeted variable cost per unit was $135 and budgeted fixed costs were $45,000. What is the activity variance for sales? $12,250 Unfavorable O No variance exists O $2,750 Favorable O $9,500 Unfavorable

At year-end a company's actual selling price was $250 per unit and the budgeted sales price per unit was $245. Actual variable costs were $65,000 and actual fixed costs were $45,000. They budgeted to sell 600 units but at year-end they ended up selling 550 units. At the beginning of the year, the budgeted variable cost per unit was $135 and budgeted fixed costs were $45,000. What is the activity variance for sales? $12,250 Unfavorable O No variance exists O $2,750 Favorable O $9,500 Unfavorable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At year-end a company's actual selling price was $250 per unit and the budgeted sales price per unit was $245. Actual variable costs were $65,000 and actual fixed costs were $45,000. They budgeted to sell 600 units but at year-end they ended up selling 550 units. At the beginning of the year, the budgeted variable cost per unit was $135 and budgeted fixed costs were $45,000. What is the activity variance for sales? $12,250 Unfavorable O No variance exists O $2,750 Favorable O $9,500 Unfavorable
Transcribed Image Text:At year-end a company's actual selling price was $250 per unit and the budgeted sales price per unit was $245. Actual variable costs were $65,000 and actual fixed costs were $45,000. They budgeted to sell 600 units but at year-end they ended up selling 550 units. At the beginning of the year, the budgeted variable cost per unit was $135 and budgeted fixed costs were $45,000. What is the activity variance for sales? $12,250 Unfavorable O No variance exists O $2,750 Favorable O $9,500 Unfavorable
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