$\begin{array}{lcc}
\text { Item to Classify } &\text { Standard } &\text {Actual }\
\text { Sales volume } & 100,000 \text { units } &96,000 \text { units }\
\text { Sales price } & \$ 4 \text { per unit }&\$3.90 \text { per unit } \
\text { Material usage } & 40,000 \text { gallons } &42,000 \text { gallons }\
\text { Labor price } & 12.50\text { per hour }&12.45 \text { per hour }
\end{array}$ All of the following variances are unfavorable except?
A) Materials usage
B) Sales price
C) Sales volume
D) Labor price

Question

$\begin{array}{lcc}
\text { Item to Classify } &\text { Standard } &\text {Actual }\
\text { Sales volume } & 100,000 \text { units } &96,000 \text { units }\
\text { Sales price } & \$  4 \text { per unit }&\$3.90 \text { per unit }  \
\text { Material usage } &  40,000 \text { gallons } &42,000 \text { gallons }\ 
\text { Labor price } &  12.50\text { per hour }&12.45 \text { per hour }
\end{array}$ All of the following variances are unfavorable except?
A) Materials usage
B) Sales price
C) Sales volume
D) Labor price

Quizplus · Accepted Answer

An unfavorable variance occurs when actual results are worse than expected results. The labor price variance is favorable because the actual price per hour ($12.45) is lower than the standard price ($12.50), indicating cost savings.

All of the Following Variances Are Unfavorable Except? A) Materials

All of the Following Variances Are Unfavorable Except?
A) Materials