Answer the following questions using the information below:
Zorro Company manufactures remote control devices for garage doors. The following information was collected during June:

-What is the sales-quantity variance?

Question

Answer the following questions using the information below:
Zorro Company manufactures remote control devices for garage doors. The following information was collected during June:
 
-What is the sales-quantity variance?

Quizplus · Accepted Answer

The sales-quantity variance can be calculated as follows:
Sales-quantity variance = (Actual sales quantity - Budgeted sales quantity) x Budgeted selling price
= (5,500 - 6,000) x $0.50
= $(-500) x $0.50
= -$250
Since the actual sales quantity is lower than the budgeted sales quantity, the sales-quantity variance is unfavorable (U). Therefore, the correct answer is C) $500 U.
There is no best choice as the question does not provide any context or criteria for making a choice.

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