What is the static-budget variance of variable costs

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Question - 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

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: EM132779477

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