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XYZ Inc. sells a single product for a budgeted selling price of $20 per unit. Budgeted Direct materials costs were $5 per unit, while Budgeted

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XYZ Inc. sells a single product for a budgeted selling price of $20 per unit. Budgeted Direct materials costs were $5 per unit, while Budgeted Direct Labour and Variable Overhead costs were $3 and $2 respectively. Budgeted Fixed overhead costs amount $25,000 per month. The company has a practical production capacity of 10,000 units per month. Budgeted Variable selling costs are $2 per unit. Budgeted Fixed selling costs are $2,000 per month. During the company's first month of operations, the company produced 10,000 units and sold 9,500 units at an average selling price of $18 per unit. Fixed and variable costs were as budgeted. The company's sales volume variance was: A) $10,000 favourable. 3) $10,000 uniavourable. 0) $20,000 favourable. D) $20,000 unfavourable

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