A Company's Master Budget for October Is to Manufacture and Sell

Multiple Choice

A company's master budget for October is to manufacture and sell 30,000 units, for a total sales revenue of $270,000, total variable costs of $180,000, and total fixed costs of $24,000. The company actually manufactured and sold 32,000 units, and generated $45,000 of operating income in October.

The sales volume variance, in terms of operating income, for October (rounded to the nearest whole dollar) was:

A) $3,600 favorable.
B) $6,000 favorable.
C) $15,400 favorable.
D) $21,000 favorable.