The static budget, at the beginning of the month, for Keats Company follows

Static budget:
Sales volume: 2,100 units; Sales price: $52.00 per unit
Variable costs: $12.00 per unit; Fixed costs: $26,000 per month
Operating income: $58,000

Actual results, at the end of the month, follows:
Actual results:
Sales volume: 1,850 units; Sales price: $59.00 per unit
Variable costs: $18.00 per unit; Fixed cost: $37,000 per month
Operating income: $38,850

Calculate the sales volume variance for operating income.
A) $9,150 U
B) $250 F
C) $10,000 U
D) $10,000 F

C .C)
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget
Units 1,850 0 1,850 250 U $2,100
Sales Revenue* $109,150 $12,950 F $96,200 $13,000 U $109,200
Variable Costs** 33,300 11,100 U 22,200 $3,000 F 25,200
Contribution Margin $75,850 $1,850 F $74,000 $10,000 U $84,000
Fixed Costs 37,000 11,000 U 26,000 $0 26,000
Operating Income/(Loss) $38,850 $9,150 U $48,000 $10,000 U $58,000

* Sales price per unit x Units
** Variable cost per unit x Units