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The XTRA Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products:

Standard Super
Budgeted sales in units 3,200 800
Budgeted selling price $600 $1,700
Budgeted contribution margin per unit $420 $1,100
Actual sales in units 3,500 1,500
Actual selling price $650 $1,680

What is the total sales-quantity variance in terms of the budgeted contribution margin?

A) $220,000 favorable
B) $340,000 favorable
C) $556,000 favorable
D) $896,000 favorable

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M948108

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