Master budget sales in units15,000Flexible budget sales in units (based on actual activity)16,500Budgeted sales price per unit$12.00Actual sales price per unit$11.00Multiple choice question.$15,000 favorable$16,500 favorable$15,000 unfavorable$16,500 unfavorable
Question
Master budget sales in units15,000Flexible budget sales in units (based on actual activity)16,500Budgeted sales price per unit11.00Multiple choice question.16,500 favorable16,500 unfavorable
Solution
The question seems to be asking for the variance between the master budget and the flexible budget. Here's how you can calculate it:
- First, calculate the total budgeted sales for the master budget: 15,000 units * 180,000
- Then, calculate the total actual sales: 16,500 units * 181,500
- Subtract the total budgeted sales from the total actual sales to find the variance: 180,000 = $1,500
So, the variance is $1,500. However, this option is not available in the multiple-choice question. It seems there might be a mistake in the question or the provided options.
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