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2 years ago

EB17.

Business

1 answer:

nekit [7.7K]2 years ago

6 0

Answer:

$600 unfavorable

Explanation:

The budgeted cost of producing 14,000 units at $5.50 per unit and with fixed costs of $19,400 is:

$B = 14,000*5.50 + 19,400\\B= \$96,400$

The variance is given by subtracting the budgeted cost by the actual cost ($97,000):

$V= \$96,400 - \$97,000\\V= -\$600$

Since the variance is negative, the variance is unfavorable

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