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llinois Instruments sells handheld communication devices for $75 during August as a back-to-school special

Accounting

llinois Instruments sells handheld communication devices for $75 during August as a back-to-school special. The normal selling price is $125. The standard variable cost for each device is $95. Sales for August had been budgeted for 400 units nationwide; however, due to the slowdown in the economy, sales were only 300. The sales price variance and sales volume variance are:

  •  A. Sales price variance $15,000 F, Sales volume variance $12,500 F
  •  B. Sales price variance $15,000 U, Sales volume variance $12,500 U
  •  C. Sales price variance $12,500 U, Sales volume variance $15,000 U
  •  D. Sales price variance $12,500 F, Sales volume variance $15,000 F

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