2 of 9 (0 complete) ? | | This Quiz: 20 pts p > his Question: 2 pts | MetaPro Sy

Question

2 of 9 (0 complete) ? | | 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 OA. $250 U. O B. $3,750 U O C. $3,750 F O D. $250 F

Explanation / Answer

Answer:

Sales Volume Variance = (Actual Units sold – Budegeted unit for sale) * Standard price per unit

Acyual Units sold = 70 units

Budgeed units for sales = 100 units

Standard price per unit = $125 per unit

Hence, Sales Volume Variance = (70 – 100) * 125

                                                    = $3750 U

The right option is (B) $3750 U.                     

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