Highland Manufacturing produces chairs and planned to sell 3,200 chairs in its master budget for the coming year. The budgeted selling price is $75 per chair, variable costs are $30 per chair, and budgeted fixed costs are $70,000 per month. At the end of the year, Highland actually sold 3,350 chairs for $251,250. Total variable costs were $100,500 and fixed costs were $72,000. What was the volume variance for sales revenue? a. $11,250 favorable b. $11,250 unfavorable c. $7,500 favorable d. $7,500 unfavorable

Highland Manufacturing produces chairs and planned to sell 3,200 chairs in its master budget for the coming year. The budgeted selling price is $75 per chair, variable costs are $30 per chair, and budgeted fixed costs are $70,000 per month. At the end of the year, Highland actually sold 3,350 chairs for $251,250. Total variable costs were $100,500 and fixed costs were $72,000. What was the volume variance for sales revenue? a. $11,250 favorable b. $11,250 unfavorable c. $7,500 favorable d. $7,500 unfavorable

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 25E: Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000...

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