Required information

Children Toys Limited makes and sells a single product. The company employs a flexible budgeting system that covers a relevant range from 25,000 units to 30,000 units and a just in time inventory system. Budget data for April, based on 27,000 units, are as follows:

Prime costs	$35 per unit
Manufacturing overhead	$137,000 plus $4 per unit
Selling and administrative expenses	$35,000 plus $3 per unit
Selling price	$75 per unit

Suppose the company produces and sells 29,000 units instead of the original 27,000 units at an average selling price of $70. What will be the company's sales volume variance for April?

Multiple Choice

• $3,000 F.

• $75,000 F.

• $75,000 U.

• $79,000U.