The Boyle Company estimated that April sales would be 150,000 units with an average selling price of $6.00.Actual sales for April were 149,000 units,and average selling price was $6.12. The sales volume variance was:
A) $6,120 favorable.
B) $6,000 unfavorable.
C) $17,880 favorable.
D) $17,880 unfavorable.

Question

Quizplus · Accepted Answer

The sales volume variance is calculated as (Actual units sold - Estimated units sold) x Estimated selling price. Here, it is (149,000 - 150,000) x $6.00 = -1,000 x $6.00 = -$6,000, which is unfavorable.

The Boyle Company Estimated That April Sales Would Be 150,000