Kid Adventures Company projected current year sales of 3,600 swing sets at a unit sale price of $225.00.Actual current year sales were 3,300 units at $215.00 per unit.Actual variable costs,budgeted at $166.00 per unit,totaled $175.00 per unit.Budgeted fixed costs totaled $122,000,while actual fixed costs amounted to $118,000.
-What is the sales volume variance for total revenue?

Question

Quizplus · Accepted Answer

Sales Volume Variance = (Actual Sales Quantity x Budgeted Unit Sale Price) - (Budgeted Sales Quantity x Budgeted Unit Sale Price)

Actual Sales Quantity = 3,300 units
Budgeted Unit Sale Price = $225.00
Budgeted Sales Quantity = 3,600 units

Therefore,
Sales Volume Variance = (3,300 x $225.00) - (3,600 x $225.00) = $67,500 unfavorable

Hence, the correct answer is D, $67,500 unfavorable.

Kid Adventures Company Projected Current Year Sales of 3,600 Swing