Zany Brainy projected current year sales of 50,000 units at a unit sale price of $20.00.Actual current year sales were 55,000 units at $22.00 per unit.Actual variable costs,budgeted at $15.00 per unit,totaled $14.00 per unit.Budgeted fixed costs totaled $400,000,while actual fixed costs amounted to $420,000.
-What is the sales volume variance for total revenue?

Question

Quizplus · Accepted Answer

The sales volume variance for total revenue is calculated as (Actual units sold - Budgeted units sold) x Budgeted price per unit. This is (55,000 - 50,000) x $20 = $100,000 favorable.

Zany Brainy Projected Current Year Sales of 50,000 Units at a Unit