Aristech Inc. planned to sell 4,000 desks in its master budget for the coming year. The budgeted selling price is $50 per desk, variable costs are $20 per desk, and fixed costs are $45,000 per month. At the end of the year, it was determined that Aristech actually sold 3,800 desks for $189,000. Total variable costs were $76,000 and fixed costs were $44,000. The volume variance for sales revenue was:

Aristech Inc. planned to sell 4,000 desks in its master budget for the coming year. The budgeted selling price is $50 per desk, variable costs are $20 per desk, and fixed costs are $45,000 per month. At the end of the year, it was determined that Aristech actually sold 3,800 desks for $189,000. Total variable costs were $76,000 and fixed costs were $44,000. The volume variance for sales revenue was:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...

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