Summit Company makes tables and planned to sell 2,800 tables in its master budget for the coming year. The budgeted selling price is $60 per table, variable costs are $25 per table, and budgeted fixed costs are $50,000 per month. At the end of the year, Summit actually sold 2,900 tables for $178,250. Total variable costs were $74,750 and fixed costs were $49,000. What was the volume variance for sales revenue? a. $6,000 favorable b. $6,000 unfavorable c. $3,000 favorable d. $3,000 unfavorable

Summit Company makes tables and planned to sell 2,800 tables in its master budget for the coming year. The budgeted selling price is $60 per table, variable costs are $25 per table, and budgeted fixed costs are $50,000 per month. At the end of the year, Summit actually sold 2,900 tables for $178,250. Total variable costs were $74,750 and fixed costs were $49,000. What was the volume variance for sales revenue? a. $6,000 favorable b. $6,000 unfavorable c. $3,000 favorable d. $3,000 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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