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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 unit12.00Actualsalespriceperunit12.00Actual sales price per unit11.00Multiple choice question.15,000favorable15,000 favorable16,500 favorable15,000unfavorable15,000 unfavorable16,500 unfavorable

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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:

  1. First, calculate the total budgeted sales for the master budget: 15,000 units * 12.00/unit=12.00/unit = 180,000
  2. Then, calculate the total actual sales: 16,500 units * 11.00/unit=11.00/unit = 181,500
  3. Subtract the total budgeted sales from the total actual sales to find the variance: 181,500181,500 - 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.

This problem has been solved

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