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A company's master budget for October is to manufacture and sell 31,600 units, for a total sales revenue of $302,000, total variable costs of $156,640,

A company's master budget for October is to manufacture and sell 31,600 units, for a total sales revenue of $302,000, total variable costs of $156,640, and total fixed costs of $27,200. The company actually manufactured and sold 33,600 units, and generated $61,000 of operating income in October.

The sales volume variance, in terms of operating income, for October was: (Do not round intermediate calculations.)

Multiple Choice

  • $8,893 favorable.

  • $9,200 favorable.

  • $22,907 favorable.

  • $33,800 favorable.

  • $7,848 favorable.

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