Reference no: EM132593443

Question 1: llinois Instruments sells handheld communication devices for $75 during August as a back-to-school special. The normal selling price is $125. The standard variable cost for each device is $95. Sales for August had been budgeted for 400 units nationwide; however, due to the slowdown in the economy, sales were only 300. The sales price variance and sales volume variance are:

Option A. Sales price variance $15,000 F, Sales volume variance $12,500 F

Option B. Sales price variance $15,000 U, Sales volume variance $12,500 U

Option C. Sales price variance $12,500 U, Sales volume variance $15,000 U

Option D. Sales price variance $12,500 F, Sales volume variance $15,000 F