Marsh,Inc.provides the following information: $$\begin{array} { | l | l | l | l | c | }
\hline & \text { Actual Sales } & \text { Static Budget } & \text { Flexible Budget } & \text { Sales Volume Variance } \
\hline \text { Sales Revenue } & \$ 556,500 & \$ 526,000 & \$ 450,000 & ? \
\hline
\end{array}$$ Calculate the sales volume variance.
A) 30,500 F
B) 30,500 U
C) $76,000 U
D) $106,500 F

Question

Marsh,Inc.provides the following information: $$\begin{array} { | l | l | l | l | c | } 
\hline & \text { Actual Sales } & \text { Static Budget } & \text { Flexible Budget } & \text { Sales Volume Variance } \
\hline \text { Sales Revenue } & \$ 556,500 & \$ 526,000 & \$ 450,000 & ? \
\hline
\end{array}$$ Calculate the sales volume variance.
A) 30,500 F
B) 30,500 U
C) $76,000 U
D) $106,500 F

Quizplus · Accepted Answer

The sales volume variance is calculated as the difference between the flexible budget and the static budget. Here, it is $450,000 (flexible budget) - $526,000 (static budget) = -$76,000, which is unfavorable (U).

Marsh,IncProvides the Following Information Calculate the Sales Volume Variance