2 of 9 (0 complete) ? | 1.This Quiz: 20 pts p his Question: 2 pts : MetaPro Syst

Question

2 of 9 (0 complete) ? | 1.This Quiz: 20 pts p his Question: 2 pts : MetaPro Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $125 for each connector and fixed costs of $9,000 per month. MetaPro's static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 70 connectors at a total cost of $18,000. MetaPro's sales volume variance for total costs is O A. $250 U. O B. $3,750 U O C. $3,750 F OD, $250 F.

Explanation / Answer

The correct answer is Option- (B) i.e. $3,750 U

Sales volume variance = (Actual units sold - Budgeted units sold) x Budgeted price per unit)

= (70-100) *125 = $3,750 Unfavorable

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