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 are correct.

Question

Quizplus · Accepted Answer

Sales volume variance = Actual volume - Planned volume
Sales volume variance = 10,000 units - 12,000 units = -2,000 units
The negative sign indicates an unfavorable variance, and the absolute value of -2,000 units is 2,000 units. Therefore, the answer is 2,000 units unfavorable.

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