Milltown Company specializes in selling used cars. During the month, the dealership sold 22 cars at an average price of $15,000 each. The budget for the month was to sell 20 cars at an average price of $16,000. Compute the dealership's sales volume variance for the month. a. $22,000 favorable. b. $32,000 unfavorable. c. $10,000 favorable. d. $32,000 favorable. e. $22,000 unfavorable.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 25E: Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000...
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Milltown Company specializes in selling used cars. During the month, the
dealership sold 22 cars at an average price of $15,000 each. The budget
for the month was to sell 20 cars at an average price of $16,000. Compute
the dealership's sales volume variance for the month.
a. $22,000 favorable.
b. $32,000 unfavorable.
c. $10,000 favorable.
d. $32,000 favorable.
e. $22,000 unfavorable.
Transcribed Image Text:Milltown Company specializes in selling used cars. During the month, the dealership sold 22 cars at an average price of $15,000 each. The budget for the month was to sell 20 cars at an average price of $16,000. Compute the dealership's sales volume variance for the month. a. $22,000 favorable. b. $32,000 unfavorable. c. $10,000 favorable. d. $32,000 favorable. e. $22,000 unfavorable.
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