Assuming actual volume is 11,000 units and planned volume is 10,000 units, the sales volume variance
A) is 1,000 units favorable.
B) is 1,000 units unfavorable.
C) cannot be determined without additional information.
D) None of these

Question

Quizplus · Accepted Answer

The sales volume variance measures the difference between the actual volume and planned volume. In this case, the actual volume is 11,000 units, which is 1,000 units higher than the planned volume of 10,000 units. Since the actual volume is higher than the planned volume, the variance is favorable. Therefore, the answer is A) is 1,000 units favorable.

Assuming Actual Volume Is 11,000 Units and Planned Volume Is