Question 12

The Company used the following data to evaluate their current operating system. The Company sells items for $18 each and used a budgeted selling price of $18 per unit.

Actual Budgeted

Units sold 31,000 units 30,000 units

Variable costs $161,000 $150,000

Fixed costs $44,000 $50,000

What is the static-budget variance of variable costs?

Group of answer choices

$5,000 unfavorable

$11,000 unfavorable

$5,000 favorable

$14,000 favorable

$1,000 favorable

$6,000 unfavorable