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Timberlake Company planned for a production and sales volume of 12,500 units. However, the company actually makes and sells 13,500 units. Per unit standards Static
Timberlake Company planned for a production and sales volume of 12,500 units. However, the company actually makes and sells 13,500 units.
Per unit standards | Static Budget | Flexible Budget | |||||||||||
Number of units | 12,500 | 13,500 | |||||||||||
Sales revenue | $ | 70.00 | $ | 875,000 | $ | 945,000 | |||||||
Variable manufacturing costs: | |||||||||||||
Materials | $ | 16.00 | 200,000 | 216,000 | |||||||||
Labor | $ | 12.00 | 150,000 | 162,000 | |||||||||
Overhead | $ | 4.70 | 58,750 | 63,450 | |||||||||
Variable general, selling, and administrative costs | $ | 16.00 | 200,000 | 216,000 | |||||||||
Contribution margin | $ | 266,250 | $ | 287,550 | |||||||||
Fixed costs | |||||||||||||
Manufacturing overhead | 105,800 | 105,800 | |||||||||||
General, selling, and administrative costs | 50,000 | 50,000 | |||||||||||
Net income | $ | 110,450 | $ | 131,750 | |||||||||
What was the total variable cost volume variance?
Multiple Choice
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$21,300 unfavorable
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$21,300 favorable
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$48,700 unfavorable
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$48,700 favorable
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