A. This answer is the result of using the budgeted quantity of units to be sold (10,000) in the variance formula. The actual quantity of units sold (8,000) should be used. See the correct answer for a complete explanation. B. The sales price variance for revenue measures the impact of the difference in the sales price per unit between actual and budgeted amounts and is calculated as follows: (Actual Price per unit - Standard Price per unit) × Actual Quantity, or (AP - SP) × AQ.

The actual unit sales price is $11.50 ($92,000 ÷ 8,000). The budgeted unit sales price is $10.50 ($105,000 ÷ 10,000). The sales price variance is ($11.50 - $10.50) × 8,000, which equals $8,000. Since the actual sales price was higher than the budgeted sales price, the variance is positive. For an income item, a positive variance is favorable.

C. The actual sales price ($11.50) was higher than budgeted sales price ($10.50), which means that variance is favorable. See the correct answer for a complete explanation.

D. The actual sales price ($11.50) was higher than budget ($10.50), which means that variance is favorable. See the correct answer for a complete explanation.