Vasquez Construction Materials Company has a sales office that sells concrete culvert pipes to property developers.The sales office is a revenue center and prepares a monthly responsibility report.The following information is provided. $$\begin{array}{l}
\text { Revenue Center Responsibility Report }\
\begin{array} { | c | c | c | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Product } \
\text { Type }
\end{array} & \begin{array} { c }
\text { Actual } \
\text { Sales } \
\text { Revenue }
\end{array} & \begin{array} { c }
\text { Flexible } \
\text { Budget } \
\text { Variance }
\end{array} & \mathbf { U } / \mathbf { F } & \begin{array} { c }
\text { Flexible } \
\text { Budget }
\end{array} & \begin{array} { c }
\text { Sales } \
\text { Volume } \
\text { Variance }
\end{array} & \text { U/F } & \begin{array} { c }
\text { Static } \
\text { Budget }
\end{array} \
\hline 40 \text { inch } & \$ 31,500 & & & \$ 30,750 & & & \$ 40,600 \
\hline 36 \text { inch long } & 40,150 & & & 42,100 & & & 33,000 \
\hline 36 \text { inch short } & 36,100 & & & 33,200 & & & 31,000 \
\hline 32 \text { inch } & 19,100 & & & 20,300 & & & 28,450 \
\hline
\end{array}
\end{array}$$ What is the sales volume variance for the 36-inch long pipe?

Question

Vasquez Construction Materials Company has a sales office that sells concrete culvert pipes to property developers.The sales office is a revenue center and prepares a monthly responsibility report.The following information is provided. $$\begin{array}{l}
\text { Revenue Center Responsibility Report }\
\begin{array} { | c | c | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Product } \
\text { Type }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Sales } \
\text { Revenue }
\end{array} & \begin{array} { c } 
\text { Flexible } \
\text { Budget } \
\text { Variance }
\end{array} & \mathbf { U } / \mathbf { F } & \begin{array} { c } 
\text { Flexible } \
\text { Budget }
\end{array} & \begin{array} { c } 
\text { Sales } \
\text { Volume } \
\text { Variance }
\end{array} & \text { U/F } & \begin{array} { c } 
\text { Static } \
\text { Budget }
\end{array} \
\hline 40 \text { inch } & \$ 31,500 & & & \$ 30,750 & & & \$ 40,600 \
\hline 36 \text { inch long } & 40,150 & & & 42,100 & & & 33,000 \
\hline 36 \text { inch short } & 36,100 & & & 33,200 & & & 31,000 \
\hline 32 \text { inch } & 19,100 & & & 20,300 & & & 28,450 \
\hline
\end{array}
\end{array}$$ What is the sales volume variance for the 36-inch long pipe?

Quizplus · Accepted Answer

The sales volume variance is calculated as the difference between the flexible budget and the static budget. For the 36-inch long pipe, the flexible budget is $42,100 and the static budget is $33,000, resulting in a favorable variance of $9,100.

Vasquez Construction Materials Company Has a Sales Office That Sells