Find What is the static-budget variance of variable costs

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Schooner Corporation used the following data to evaluate its current operating system. The company sells items for $25 each and used a budgeted selling price of $25 per unit.

                                   Actual                    Budgeted
Units sold                 173,000 units          181,000 units
Variable costs            $1,081,000             $1,285,000
Fixed costs                 $806,000              $770,000

Problem 1: What is the static-budget variance of variable costs?

A. $36,000 unfavorable
B. $204,000 favorable
C. $204,000 unfavorable
D. $36,000 favorable

Reference no: EM132773632

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