The budgeted quantity of Product P sold by Alpha, Inc., is 1,500 units. The actual quantity sold is 1,600 units. The budgeted average unit contribution margin is $8.50. Compute the contribution margin volume variance.
A)$950 (F)
B)$700 (U)
C)$850 (F)
D)$800 (U)

Question

Quizplus · Accepted Answer

Contribution margin volume variance = (Actual quantity sold - Budgeted quantity sold) x Budgeted contribution margin per unit

= (1,600 - 1,500) x $8.50

= $850 (F)

The Budgeted Quantity of Product P Sold by Alpha, Inc