Use the information below to answer the following question(s).Teddy Bear Company sold a total of 30,000 stuffed tigers and lions.During August the following information was gathered:

-What is the Teddy Bear Company total sales-volume variance?

Question

Use the information below to answer the following question(s).Teddy Bear Company sold a total of 30,000 stuffed tigers and lions.During August the following information was gathered:
 
-What is the Teddy Bear Company total sales-volume variance?

Quizplus · Accepted Answer

To calculate sales-volume variance, we need to use the formula:
Sales-Volume Variance = (Actual Quantity Sold - Budgeted Quantity Sold) x Budgeted Selling Price

Actual Quantity Sold = 30,000
Budgeted Quantity Sold = 28,000 + 500 + 2,000 = 30,500
Budgeted Selling Price = $5.50

Sales-Volume Variance = (30,000 - 30,500) x $5.50
Sales-Volume Variance = -$2,750

Since the result is negative, it means that the actual sales volume is lower than the budgeted sales volume, which is unfavorable. Therefore, the answer is B, $9,250 unfavorable.

Use the Information Below to Answer the Following Question(s)