1. Zany projected current year sales of 50,000 units at a unit sale price of $20.00. Actual current year sales were 55,000 units at $22.00 per unit. Actual variable costs, budgeted at $15.00 per unit, totaled $14.00 per unit. Budgeted fixed costs totaled $400,000, while actual fixed costs amounted to $420,000. What is the sales volume variance for total revenue?
a) $100,000 unfavorable b) $100,000 favorable c) $110,000 favorable d) $110,000 unfavorable
2. Which of the following best describes an "opportunity cost"?
1. expected future costs that differs among alternatives
2. costs that were incurred in the past and cannot be changed
3. the distribution of all products to be sold
4. benefits foregone by not choosing an alternative course of action.