The Static Budget,at the Beginning of the Month,for Keats Company

Multiple Choice

The static budget,at the beginning of the month,for Keats Company follows: Static budget:
Sales volume: 2,000 units; Sales price: $51.00 per unit
Variable costs: $12.50 per unit; Fixed costs: $26,500 per month
Operating income: $50,500
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 1,950 units; Sales price: $60.00 per unit
Variable costs: $16.00 per unit; Fixed cost: $38,000 per month
Operating income: $47,800
Calculate the sales volume variance for operating income.

A) $775 U
B) $50 F
C) $1,925 U
D) $1,925 F