The static budget, at the beginning of the month, for New England Furniture Company follows:
Static budget:
Sales volume: 1000 units; Sales price: $71.00 per unit
Variable costs: $33.00 per unit; Fixed costs: $36,200 per month
Operating income: $1800
Actual results, at the end of the month, follows:
Actual results:
Sales volume: 960 units; Sales price: $74.00 per unit
Variable costs: $35.00 per unit; Fixed costs: $35,000 per month
Operating income: $2440
Calculate the sales volume variance for fixed costs.
A) $1920 U
B) $1200 F
C) $1520 U
D) $0
D) $0
Explanation:
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