Genent Company manufactures tires. Some of the company's data was misplaced. Use the following information to replace the lost data:
Actual Results Flexible Budget Variances Flexible Budget Saiesminus-Volume Variances Static Budget
Units sold 495,000 495,000 453,750
Revenues $185,150 $4,400 F (A) $6,160 U (B)
Variable costs (C) $880 U $69,780 $10,300 F $88,080
Fixed costs $36,430 $3,770 F $40,200 0 $40,200
Operating income $78,060 (D) $70,770 (E) $66,630
Required:
What is the total sales-volume variance (E)?
a. $4,140 favorable
b. $14,960 favorable
c. $14,960 unfavorable
d. $7,290 unfavorable
Answers: 1
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