Assuming actual volume is 10,000 units and planned volume is 12,000 units,the sales volume variance in units:
A) Equals 2,000 units unfavorable.
B) Equals 2,000 units favorable.
C) Cannot be determined without additional information.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

Sales volume variance (in units)= Static budget (that is,planned volume)- Flexible budget (that is,actual volume)
Sales volume variance (in units)= 12,000 units - 10,000 units = 2,000 units unfavorable
Since the actual volume was greater than the planned volume,the variance is favorable.
Since the actual volume was less than the planned volume,the variance is unfavorable.

Assuming Actual Volume Is 10,000 Units and Planned Volume Is