Answer:
$1,450 unfavorable
Explanation:
For computing the variance, first we have to compute the budgeted profit which is shown below:
The budgeted profit = Revenue - expenses
where,
Revenue is $190,000
And, the expenses = Variable cost + Fixed cost
The variable cost per unit is not given so first we have to calculate it
Variable cost per unit = $105,840 ÷ 2,400 units = $44.10
Now for 2,500 units, the total cost would be
= ($44.10 × 2,500 units) + $31,300
= $141,550
Now the budgeted profit would be
= $190,000 - $141,550
= $48,450
And, the variance equal to
= Actual profit - budgeted profit
= $47,000 - $48,450
= $1,450 unfavorable
