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Homework answers / question archive /  KLM Company budgeted production and sales of 63,000 units of Xeron in June, but produced and sold only 60,000 units

 KLM Company budgeted production and sales of 63,000 units of Xeron in June, but produced and sold only 60,000 units

Accounting

 KLM Company budgeted production and sales of 63,000 units of Xeron in June, but produced and sold only 60,000 units. Variable costs of $125,000 were incurred during this period. Variable manufacturing cost was budgeted at $2.25 per unit. What is the flexible budget variance for the variable manufacturing cost?

 

A) $16,750 F

B) $16,750 U

C) $10,000 F

D) $10,000 U

E) None of the above.

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