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The Comfort Foam Products Company completed the flexible budget analysis for the second quarter, which is given below. Flexible Sales Actual Budget Flexible Volume Static
The Comfort Foam Products Company completed the flexible budget analysis for the second quarter, which is given below. Flexible Sales Actual Budget Flexible Volume Static Results Variance Budget Variance Budget Units 12,850 0 12,850 1,050 F 11,800 Sales Revenue 562,760 $2,688 U $65,448 $5,348 F $60,100 Variable Costs 27,600 125 U 27,475 $2,245 U 25,230 Contribution Margin $35,160 $2,813 U $37.973 $3.103 F $34,870 Fixed Costs 34,280 260 U 34,020 $0 34,020 Operating Income/(Loss) $880 $3,073 U $3,953 $3,103 F $850 Which of the following would be a correct factor to explain the sales volume variance for variable costs? O A. decrease in sales price per unit O B. increase in fixed costs OC. increase in variable cost per unit O.D. increase in sales volume
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