Com Inc. Is a company that specializes in selling computers. However, last month, they encountered a favorable revenue price variance of $10,000. Now, they want to gain a deeper understanding of the factors contributing to this variance-specifically, how much can be attributed to inflation and how much can be attributable to their own price. To do so, they divided the revenue price variance into two distinct components: the inflation revenue price variance" and the "own price variance The formula for "inflation revenue price variance" is (P B * I - P B)* O A. Irwords, this is "Budgeted price times (1 + inflation rate), minus budgeted price, all times actual quantity" P B = $5.00 per unit Inflation rate = 6%. Thus, P B* | = P B * 1.06 = $5.3. Q_A = 20,000 units

What is "own price variance"?

A. 2, 000 F

B. 10,000 F

C. 1,000 U

D. 4,000 F

E. not enough information given.

F. 4,000 U

U = unfavorable

F = favorable