The Ferguson Company estimated that October sales would be 100,000 units with an average selling price of $6.00.Actual sales for October were 105,000 units,and average selling price was $5.95. The sales volume variance was:
A) $30,000 favorable.
B) $30,000 unfavorable.
C) $29,750 favorable.
D) $29,750 unfavorable.

Question

Quizplus · Accepted Answer

The sales volume variance is calculated as (Actual units sold - Estimated units sold) x Estimated selling price. Here, (105,000 - 100,000) x $6.00 = $30,000 favorable.

The Ferguson Company Estimated That October Sales Would Be 100,000