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Question - Fixed production costs for the Velvet Corporation are budgeted at $80,000, assuming 40,000 units of production. Actual sales for the period were 35,000 units, while actual production was 40,000 units. Actual fixed costs were $70,000. What is the budget variance?
A. $10,000 favorable
B. $10,000 unfavorable
C. $0
D. All of the other answers are incorrect
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