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What is the total flexible-budget variance

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Question - The Sasita Corporation manufactures two types of vacuum cleaners, the Zenith for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 2019 were as follows:

Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the Zenith and House-Helper category to be 250,000 units, but actual industry volume was 256,000 units.

Required - What is the total flexible-budget variance in terms of the contribution margin?

a. $700,000 F

b. $900,000 F

c. $360,000 U

d. $500,000 F

e. $200,000 U

Reference no: EM133038908

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