Fullerton company's master budget calls for production and sale of 1,000 units for $5,000; variable costs of $2,000; and fixed costs of $1,000. During the most recent period, the company incurred $2,200 of variable costs and $1,100 of fixed costs to produce and sell 1200 units for $5,100. What is the sales volume variance for operating income? $900 unfavorable $500 favorable $800 favorable $400 unfavorable

Cornerstones of Cost Management (Cornerstones Series)
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Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 25E: Jasmine Companys expected sales were 2,000 units at 100 per unit. During 20x1, it had actual sales...
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Fullerton company's master budget calls
for production and sale of 1,000 units for
$5,000; variable costs of $2,000; and fixed
costs of $1,000. During the most recent
period, the company incurred $2,200 of
variable costs and $1,100 of fixed costs to
produce and sell 1200 units for $5,100.
What is the sales volume variance for
operating income?
$900 unfavorable
$500 favorable
$800 favorable
$400 unfavorable
Transcribed Image Text:Fullerton company's master budget calls for production and sale of 1,000 units for $5,000; variable costs of $2,000; and fixed costs of $1,000. During the most recent period, the company incurred $2,200 of variable costs and $1,100 of fixed costs to produce and sell 1200 units for $5,100. What is the sales volume variance for operating income? $900 unfavorable $500 favorable $800 favorable $400 unfavorable
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