Interspace Merchandising anticipated selling 29,000 units of a major product and paying sales commissions of $6 per unit. Actual sales and sales commissions totaled 31,500 units and $182,700, respectively. If the company used a static budget for performance evaluations, Interstate would report a cost variance of:
A) $6,300U.
B) $6,300F.
C) $8,700U.
D) $8,700F.
E) None of the other answers are correct.

Question

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The Answer of Interspace Merchandising anticipated selling 29,000 units of a major product and paying sales commissions of $6 per unit. Actual sales and sales commissions totaled 31,500 units and $182,700, respectively. If the company used a static budget for performance evaluations, Interstate would report a cost variance of:
A) $6,300U.
B) $6,300F.
C) $8,700U.
D) $8,700F.
E) None of the other answers are correct.

Interspace Merchandising Anticipated Selling 29,000 Units of a Major Product