A company uses a standard absorption costing system and adjusts for any under or over absorbed overheads at the end of each period. The company produces only one type of product. The unit standard costs were the same in both March and April. Data for April included:

Budget Actual

Sales volume 90,000 units 85,000 units

Production volume 80,000 units 78,000 units

Total fixed production overheads $400,000 $395,000

Selling price per unit $11 $14

Variable production costs per unit $4 $4

Determine the sales price variance for April was

Select one:

A. $255,000 favourable

B. $108,000 favourable

C. $170,000 favourable

D. $270,000 favourable

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A company has carried out market research into how many cars it can sell at different prices. If the variable costs per car are $8,000 and total fixed costs are $50,000, from the information below, what is the optimum price?

Options	Number of Cars	Selling price ($)
Option 1	100,000	10,000
Option 2	80,000	12,000
Option 3	70,000	14,000
Option 4	50,000	16,000

Select one:

A. OPTION 3

B. OPTION 2

C. OPTION 1

D. OPTION 4