The Comfort Foam Products Company completed the flexible budget analysis for the second quarter,which is given below. Which of the following would be a correct factor to explain the sales volume variance for variable costs?

Question

The Comfort Foam Products Company completed the flexible budget analysis for the second quarter,which is given below.  Which of the following would be a correct factor to explain the sales volume variance for variable costs?

Quizplus · Accepted Answer

Sales volume variance for variable costs is impacted by the level of sales volume. An increase in sales volume leads to a favorable variance, while a decrease in sales volume leads to an unfavorable variance. Therefore, an increase in sales volume (choice C) would explain a favorable sales volume variance for variable costs. Choices A, B, and D do not relate to the sales volume variance for variable costs.

The Comfort Foam Products Company Completed the Flexible Budget Analysis