LG Corporation had the following static budget What will be

LG Corporation had the following static budget:

What will be the overall volume variance if 15,000 units are produced and sold?

A. $90,000 U

B. $50,000 F

C. $210,000 F

D. $70,000 U

	Per Unit		Total
Sales	$	70		$	840,000
Less variable costs:
Manufacturing costs		30			360,000
Selling and administrative costs		20			230,000
Contribution margin	$	20		$	250,000
Less fixed costs:
Manufacturing costs					78,000
Selling and administrative costs					134,000
Total fixed costs					212,000
Net income				$	38,000

Overall Volume variance = [actual quantity sold – budgeted quantity sold]* budgeted price

Actual quantity sold = 15000 units

Budgeted quantity sold = Budgeted sales / budgeted price = 840000/70 = 12000 units

Budgeted price = $ 70

Overall Volume variance =[15000-12000]*70 = 3000*70 = $ 210000 Favorable

Hence correct answer is Option C - $ 210000 F