Barrington Industries anticipated selling 29,000 units of a major product and paying sales commissions of $6 per unit. Actual sales and sales commissions totaled 31,500 units and $182,700, respectively. If the company used a static budget for performance evaluations, Barrington would report a cost variance of:
A. $8,700F.
B. $8,700U.
C. $6,300F.
D. $6,300U.
E. None of the answers is correct.
Answer: B
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