[amp_mcq option1=”$87,500″ option2=”$97,500″ option3=”$67,500″ option4=”$57,500″ correct=”option3″]
The correct answer is $\boxed{\text{C}}$.
Selling price variance is the difference between the actual selling price and the budgeted selling price, multiplied by the actual units sold. In this case, the actual selling price is $500, the actual result is $250, and the actual units sold are 350. Therefore, the selling price variance is:
$$\text{Selling price variance} = (500 – 250) \times 350 = $67,500$$
Option A is incorrect because it is the difference between the actual selling price and the budgeted selling price, multiplied by the budgeted units sold. Option B is incorrect because it is the difference between the actual result and the budgeted selling price, multiplied by the actual units sold. Option D is incorrect because it is the difference between the actual result and the budgeted result, multiplied by the actual units sold.