The static budget, at the beginning of the month, for La Verne Company follows:

Static budget:
Sales volume: 2100 units: Sales price: $56.00 per unit
Variable cost: $14.00 per unit: Fixed costs: $26,000 per month
Operating income: $62,200

Actual results, at the end of the month, follows:
Actual results:
Sales volume: 1800 units: Sales price: $59.00 per unit
Variable cost: $16.00 per unit: Fixed costs $35,000 per month
Operating income: $42,400

Calculate the sales volume variance for variable costs.
A) $12,600 U
B) $4200 F
C) $300 U
D) $12,600 F


B) $4200 F

Explanation:

Business

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