At the End of 20x1, SWP Corporation Prepared Its Master

Multiple Choice

At the end of 20x1, SWP Corporation prepared its master budget for 20x2. Selected amounts from that budget, along with actual results for 20x2, are presented below: Budgeted Actual
Sales $180,000 $210,000
Research and development cost 25,000 20,000
Interest revenue 7,600 7,000
Cost of goods sold 60,000 65,000
Marketing costs 45,000 45,000
The variance for cost of goods sold could be explained by:

A) Actual sales being greater than the budget
B) Actual sales being less than the budget
C) Price discounts for purchasing in bulk
D) Decreases in raw material prices