Answer the Following Questions Using the Information Below:
Barossa Valley

Answer the following questions using the information below:
Barossa Valley Wines used the following data to evaluate their current operating system.The company sells items for $10 each and used a budgeted selling price of $10 per unit.
$$\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\\text { Units sold } & 495000 \text { units } & 500000 \text { units } \\\text { Variable costs } & \$ 1250000 & \$ 1500000 \\\text { Fixed costs } & \$ 925000 & \$ 900000\end{array}$$
-What is the static-budget variance of operating profit?

A) $175 000 favourable
B) $325 000 unfavourable
C) $195 000 unfavourable
D) $225 000 favourable

Correct Answer:

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