Multiple Choice
Abrasive Brothers, Inc., manufactures brake pads for automobiles. For April 2017, the company's static budget projected 5,000 units would be produced and sold at a variable cost of $6 per unit and total fixed costs of $12,000. The budgeted selling price was $18 per unit. Actual results for April were somewhat disappointing in that the company produced and sold only 4,200 units at an actual price of $17.50 per unit.
-What sale price variance would the company report for April?
A) $0.50 Unfavorable.
B) $14,400 Unfavorable.
C) $14,000 Unfavorable.
D) $2,100 Unfavorable.
Correct Answer:
Verified
Correct Answer:
Verified
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