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Almond Company expressed the total expenses (Y) component of its master budget for February with the cost formula Y = $90,000 + $20 * X,
Almond Company expressed the total expenses (Y) component of its master budget for February with the cost formula Y = $90,000 + $20 * X, where X represents the expected number of units of its only product to be manufactured and sold. The budgeted average selling price per unit was $40 for budgeted sales volume 6,000 units. Reported actual results for February were as follows: Sales 6.200 units Sales revenue $ 260,000 Less variable costs ($ 125,000) Contribution margin $ 135,000 Less fixed costs ($ 98,000) Operating Income $ 37,000 What was the total static budget variance for February? A. $6,500 Unfavourable OB. $6,000 Unfavourable OC. $7,000 Favourable OD. $7,500 Favourable
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