Reference no: EM132930372

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:

                                    Budgeted              Operating               Results                   MTETMTET

Price per pound                   $30                      $90                   $40                           $46

Variable cost per pound            20                   35                        37                             53

Sales (in pounds)                      3,300              3,300                   3,200                         4,800

The total market was estimated to be 73,000 pounds at the time of budget. The actual total market for the year is 68,000 pounds.

Problem 1: What is ET's sales quantity variance?

Multiple Choice

Option 1: $35,460 favorable.
Option 2: $39,940 favorable.
Option 3: $34,500 favorable.
Option 4: $38,500 favorable.
Option 5: $51,460 favorable.