A. The contribution margin volume variance is calculated as follows: (Actual Quantity - Budgeted Quantity) × Budgeted Unit Contribution Margin. The actual quantity is 3,800 and the budgeted quantity is 4,000. The budgeted contribution margin per unit is $9 [($60,000 sales revenue - $16,000 variable manufacturing costs - $8,000 variable S&A costs) ÷ 4,000 units]. Therefore, the contribution margin volume variance is (3,800 - 4,000) × $9 = $(1,800) unfavorable.
B. This is the difference between the actual and budgeted variable S&A costs. This number does not mean anything.
C. This is the difference between budgeted and actual units. See the correct answer for a complete explanation.
D. This is the difference between actual and budgeted revenue. See the correct answer for a complete explanation.
