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Gridiron Merchandising Anticipated Selling 27,000 Units of a Major Product

Question 78

Multiple Choice

Gridiron Merchandising anticipated selling 27,000 units of a major product and paying sales commissions of $6 per unit. Actual sales and sales commissions totaled 27,500 units and $171,400, respectively. If the company used a flexible budget for performance evaluations, Gridiron would report a cost variance of:


A) $6,400U.
B) $6,400F.
C) $9,400U.
D) $9,400F.
E) None of the other answers are correct.

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